Belarusian currency

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Presentation for International Finance Class at WSB-NLU
Created By:
Aleksey Narko
Karina Gapeenko
Nowy Sacz 2012

Published in: News & Politics, Travel
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Belarusian currency

  1. 1. Belarusian Currency By Karina Hapeyenko Aleksey Narko
  2. 2. Premises • The Soviet ruble - currency of the Soviet Union from 1923 to December 26, 1991. • After the collapse of the Soviet Union in 1992-1995, the Soviet ruble has gradually taken out of circulation. • Coupons are used.
  3. 3. Volatility vs. History • Belarus ruble has been an extremely volatile currency since its introduction in 1992. • In 1999, 5 million rubles were worth 10 USD. • Since 1992 20 types of payment cards have been produced • In 2009 ruble has been tied to the dollar • In 2011 Belarusian ruble became three times weeker
  4. 4. Purchasing power • 2011 Financial crisis • 50% devaluation of Belarusian ruble • Exchange rate rise • Basic inflation of 118% • Black market arises
  5. 5. Interest rate over the years 8.55% - 2008 11.68% - 2009 9.22% -2010 Belarus is raising its main interest rate on 1 June 2011 to 16% from 14% as it tries to battle inflation.
  6. 6. Interest Rate Spread Interest rate spread - the interest rate charged by banks on loans to prime customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. Interest rate spread (lending rate minus deposit rate, %)
  7. 7. Political Issues • Introduction of the Russian ruble, firstly, within the Union State of Belarus and Russia. • Starting in 2008, the Central Bank of the Republic of Belarus announced that the ruble will be tied to the United States dollar instead of the Russian ruble. • At present, Belarusian investors assess the risks as the highest after Argentina and Venezuela, among developing countries that operate on the Eurobond market.
  8. 8. Local Price of Goods
  9. 9. Questions? Thank you for attention!

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