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Economist Syarhey Balykin has called on the Belarusian authorities to devaluate the national currency amid the global financial crisis.
"Devaluation is surely a bitter pill, but it should be taken to rehabilitate the economy," Mr. Balykin told BelaPAN.
He said that it was possible to keep the Belarusian rubel's rate at the current level by creating its deficit, warning that it would "not be the best choice." A deficit of the national currency cash would affect enterprises, leading to delays in the payment of wages and an increase in the unemployment rate, he said.
The expert stressed that the Belarusian authorities' policy of supporting the rubel with administrative measures was risky as it would result into the return of the black currency exchange market.
"Its effects could be eventually harmful for the economy," he said. "A deficit of foreign currencies would mean difficulties for importers, while the artificially high rate of the national currency is ruining our exporters. When reserves and leverages to support the Belarusian rubel run out, there will be its sharp fall."
"It appears that the policy of propping up the rubel with administrative measures combines disadvantages of both devaluation and the retention of the rate with market measures," he said. "Unfortunately, the Belarusian authorities are choosing of the two evils both."
"Economy requires devaluation, but a profound devaluation will dispel the myth of the stability of the national currency, the developing economy and the growth of people's income to have negative psychological effects on the population," he said.
"The fact that demand for foreign currencies in the exchange market outstrips the supply is evidence that the rate of the Belarusian rubel is inflated. And the state should devaluate the currency to the level that will allow to satisfy demand for foreign currencies in full," he said.