Belarus: the denomination will reduce inflation?

In July 2016 was quite an expected event in the economy of the Republic of Belarus – denomination of the national currency. Of course, it was predictable, because patterns of modern banknotes printed in 2009. But then the government postponed the reform. How was the denomination in Belarus in 2016 and decide whether it is all the current problems, let's talk more.

Reform is masking inflation?

The Main question asked ordinary citizens in the Republic of Belarus: "the Denomination hides hyperinflation?" What should people expect? Do I need to rush to exchange offices? Ordinary people, according to official statements of the authorities, there is nothing to fear. No economic loss will not suffer the population of the Republic of Belarus – denomination implies a temporary period of use of banknotes. Both old and new will be in circulation until the end of 2016.

But the main problem of the economy – inflation. Past experience in denominations has shown that without simultaneous measures to reduce its level of any positive changes to the population can be expected.

Inflation in the country, according to leading independent economists, involves:

• With large budget expenditures.
• With preferential loans to unprofitable sectors of the economy.
• Lack of measures on competition development in the consumer market.

Hence the conclusion: it is necessary to reduce costs, cease to pour money into unprofitable businesses, and expand competition. In conjunction with the emission control of such reform will reduce inflation, which now stands at about 15% in the Republic of Belarus. The denomination is, according to economists, is effective in its level of 3-5 %.

Features

Features of the reform is that the so-called “strange” the denomination in the Republic of Belarus will immediately cut off four zeros from the bills. For the First time again, coins that were just useless.

Table denomination in Belarus

Here is the procedure for the transfer of old Bank notes in the new money.

Samples and the first batch of money was printed in 2009 year, before the reform of language in the Republic. Therefore, there was a paradoxical situation – the new banknotes have become obsolete prior to the official circulation in the market. But in spite of this, in order to save it was decided to leave them.

The Period of dual price

The strangeness of the reforms that have cut four zero, but in the transition period. Some people remember the Soviet reforms of money when the given number of days. As a result, many do not have time to replace the old money for new. In Belarus decided to make it so that the population absolutely does not feel the exchange of money. Exchange cash of 2000 on the new bill (of 2009) will occur so: they plan to be in parallel circulation until the end of 2016.

All sellers, producers of goods and services are required to indicate two prices: the new and the old rate. No bonuses, commissions and benefits for the use of a particular currency is not valid. For example, if in the store when you pay the new bill promise to provide additional discounts, such action is unlawful.

Those who will not have time to exchange money before year end, maybe before the end of 2019 to make it into the credit-financial organizations and national Bank, and from 2020 to 2021 – only in national Bank.

Thus, according to the official authorities, provided all the conditions for ordinary citizens, for which the process of denomination will not create additional problems. But is it really?

Why the rush?

Some economists are surprised by the timing of the reforms. Denomination in Belarus in 2016 is July. That is creating further problems for businesses who submit tax returns. Dual reporting creates confusion and fiscal authorities. It would be better forstatistical and financial statements to increase imports from 1 January. In addition, its implementation would be best if you slowed down at least for two consecutive years the rate of inflation.

The Era of solid millionaires over?

Some analysts believe that this reform will not affect the Belarusian economy. It is rather technical, not an economic operation, which has its psychological consequences. The era of indiscriminate millionaires over. Belarus goes to the normal expense of money. But for how much longer with the pace of inflation?

The national Bank of Belarus was against reform. He argued that only when inflation is below 10 percent requires such reforms to trim zeros. It's expected the percentage to the end of the year – 12 percent, but most likely it will be higher. The national Bank went to the reform only under pressure from the government, which means they have serious intentions to fight inflation by the management.

Belarus Denomination: new notes

The size of the new bills do not differ from the previous – 150 74 mm. Similar meaning: architecture, national patterns. But the design of banknotes has become more “European”. The reason is that the competition of the national Bank for the design and printing of Belarusian rubles won manufacturer from Europe. Who exactly has not been disclosed. We will remind that Belarus does not have its own mint with the printing press. In addition, it is also not planned, because, according to the manual, it's too expensive and unprofitable businesses for a small state.

The Cost of one of the banknotes or coins is 1 to 4 cents. From this it follows that the coin 1 penny, for example, at the current rate almost twice cheaper cost.

As noted above, the new notes are outdated, as printed in 2009. They signed the former head of the national Bank P. Prokopovich. In addition, there was language reform in the country. On the bills are written “pacijent”, but under the new rule must be “parijaat”. But this discrepancy promises to resolve the following notes.

The largest banknote – 500 rubles. But how long will it last on rated Olympus with a high level of inflation, time will tell.