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Fee on foreign exchange purchase cut to 10 percent

The National Bank of Belarus (NBB) has reduced the fee on purchases of foreign exchange by individuals and legal entities from 20 to 10 percent in what experts view as yet another step toward ending the de facto multiplicity of the rubel's exchange rates.

In its statement on Monday, the NBB said that the fee cut was part of "consistent measures to normalize the situation in the financial sector."

On January 5, the Belarusian rubel fell against the US dollar by seven percent to 12,740 as a result of trading at the Belarusian Currency and Stock Exchange.

The National Bank said that the reduction of the fee and Monday's depreciation of the rubel would draw the "exchange rates [of the rubel] in various segments of the currency market closer to each other" and prevent an increase in the de facto cost of foreign exchange for importers and individuals.

According to the statement, sufficient amounts of foreign cash are available in most of the country's currency exchange outlets, and legal entities and individuals "have been selling more foreign exchange than buying as of late."

The fee was introduced on December 20 amid soaring demand for foreign cash from individuals. It was lowered from 30 to 20 percent on December 29.

The authorities said that the fee was temporary and can be abolished on February 1.