Belarusian ruble

Belarusian ruble

Беларускі рубель
Payment coupon of the National Bank of Belarus, 1992, 50 kopeks, reverse Symbol of the Belarusian ruble
ISO 4217
Code	BYR
Denominations
Banknotes	10, 20, 50, 100, 500, 1000, 5000, 10000, 20000, 50000, 100000 rubles
Coins	none
Demographics
User(s)	Belarus
Issuance
Central bank	National Bank of the Republic of Belarus
Website	www.bank.gov.ua
Valuation
Inflation	8%
Source	CIA World Fact Book, 2005 est.

Belarusian ruble (ISO-code BYR, before 2000 - BYB) is the official currency of Belarus. The short sign used for the Belarusian ruble is Br. 1 rouble is formally divided in 100 kapiejkas. There are banknotes issued in the denominations of 5, 10, 20, 50, 100, 500, 1000, 10000, 20000, 50000, and 100000 Br. There are no coins or banknotes issued in kapiejkas. As of May 14, 2006, the monetary conversion rate is approximately $1:Br.2151.50

Name

The name of the Belarusian currency comes from the Russian ruble and was left after the collapse of the Soviet monetary system and Belarus' refusal to introduce a national currency - the taler.

History

payment coupon of the National Bank of Belarus, 1992, 50 kopeks, reverse

At the beginning of 1992, during the breakdown of the common Soviet monetary system, a temporary coupon system was introduced in Belarus.

Beginning with June 1, 1992 operations with Belarusian non-cash money started being carried out by Belarusian banks. In the end of June 1993 the withdrawal of Russian and Soviet roubles from the turnover began. The Belarusian rouble became the only valid payment instrument to be used inside of Belarus. Although in September there was a new agreement signed by Kazakhstan, Armenia, Russia, Belarus, Uzbekistan and Tajikistan with the purpose to establish a united post-Soviet monetary zone, at the same time, a project of introducing a new national currency, the taler was started in Belarus.

Monetary policy of Belarus in the 1990s

From the very beginning, the government of Belarus started promoting an integration with Russia. The idea of unifying two monetary systems, to be exact - of Belarus' becoming part of the Russian monetary system, was actively discussed.

In 1996 the National Bank was put under governmental control. The National Bank has lost the ability to carry out a policy independent from the government.

Two National Bank presidents, (Stanislau Bahdankievic and Tamara Vinnikava) resigned as a protest against the National Bank's subordination to the government. As a result Piatro Prakapovic was appointed president of the National Bank.

5000 Br banknote, 1998, obverse

5000 Br banknote, 1998, reverse

By the beginning of 1997 the devaluation of the rouble to US dollar was 35.5%.

The aim of state monetary policy was to narrow free price formation on the national monetary market. Massive restrictions in trade with currencies for companies and individuals were introduced. An black currency market arised.

As a result, at the beginning of 1999 the official exchange rate was 2-2.5 times lower than the shadow rate.

Between 1996 and 2000 the volume of unpaid state liability to commercial banks rose by more than 140 times. The National Banks gave loans to credit institution to support their liquidity. The pressure of the state that demanded from the banks to credit the unprofitable agriculture caused critical state of the banking system. As a result, in January 2000 10 of 27 Belarusian commercial banks were in the process of liquidation.

The money supply growth exceeded the GNP by more than 500 times. The official exchange rate went in 1995-2000 down by 30.2 times. In September 1999 the first 5,000,000 Br banknote was issued. The consumer Price index rose by 74.2 times, the income of the people went down.

The Belarusian rouble is practically not being used in foreign-economic account.

1 Br banknote, 2000 г., obverse

1 Br banknote, 2000 г., reverse

Monetary integration with Russia

From the beginning of his presidency, Alexander Lukashenko began to suggest the idea of an integration with Russia and to undertake steps in this direction. From the beginning, there was also an idea of introducing a united currency for the Union of Russia and Belarus. Art. 13 of the 1999 "Treaty of Creation of the Union State of Russia and Belarus" foresaw a unified currency.

The change to a common currency meant the creation of a united central bank or agency. The placement and control of such facilities proved to be contentious - the main debate was whether they should be in Moscow (the Russian capital), Minsk (the Belarusian capital) or both at the same time.

After the election of Vladimir Putin, Russia took a more pragmatic and determined position in the question of integration with Belarus.

In 2000 the National Bank of Belarus took urgent measures. The Belarusian rouble was devalued by 1000 times , but when the shadow exchange rate released as official, currency exchange liberalised. Stability of the exchange rate became a priority for the National Bank, by Russian demand.

In December 2002 in a meeting of prime ministers of Belarus and Russia, it was declared that at the beginning, the Russian ruble would be introduced as a common currency. It was planned that since July 1, 2003 the Russian rouble would be introduced in Belarus for banking operations and completely replace the Belarusian rouble on January 1, 2004. In 2007 or 2008 a new supranational currency would be introduced.

Although technical and economical conditions were declared to be created, Belarus never introduced the Russian rouble, with progressive postponements of steps towards transition.

Banknotes

Newest series (2000's) [1]
Image Front & Back		Value	Dimensions	Color	Obverse	Reverse	Issued Date
		1 ruble		Green	The building of the National Academy of Sciences of Belarus.	Value	January 1, 2000
		5 rubles		Rose-red	Buildings .
		10 rubles	110 x 60 mm	Light blue	The building of the National Library of Belarus.
		20 rubles	150 x 69 mm	Olive-yellow	The building of the National Bank of Belarus.	The interior of the building of the National Bank of Belarus .
		50 rubles		Orange-red	The Holmsk Gate - fragment of the Memorial Brest Hero-Fortress	The main entrance to the Memorial Brest Hero-Fortress.
		100 rubles		Light green	The National Academic Great Opera and Ballet House of Belarus in Minsk.	Scene from ballet "Favorite" by E.A. Glebov.
		500 rubles		Light brown	The Republican Trade Unions' Palace of Culture in Minsk.	Architectural decorations on the Republican Palace of Culture of Belarus.

External links

• Template:Ru icon/Template:En icon National Bank of the Republic of Belarus