June 1, Minsk /BELTA/. Foreign currency trading on the Belarusian Currency and Stock Exchange will switch to a continuous double auction mode from June 1, BELTA reports.
Previously, exchange trading in Belarus was conducted in a fixing mode, where all transactions in a single foreign currency were carried out at the same rate.
During trading in the continuous double auction mode, the rates of concluded transactions may differ. The weighted average rate formed based on the results of trading in US dollars, euros, and Russian rubles will be used by the National Bank as the official exchange rate of the Belarusian ruble to these currencies from the day following the trading day. Taking into account the duration of the trading session from 11:00 to 12:25 (including the closing period), official rates on the regulator's website will be published around 13:00.
In connection with the introduction of the continuous double auction mode, taking into account the specifics of its operation, from June 1, only purchase and sale transactions of foreign currency by banks and non-bank credit and financial organizations will be carried out on the exchange currency market, acting in their own name and at their own expense, as well as in their own name and on behalf of clients with mandatory sale of foreign currency.
Banks will settle mandatory sale transactions with clients at the weighted average rate calculated based on the bank's transactions concluded during the mandatory sale of foreign currency within the trading session. Thus, the rate of mandatory sale in one bank may differ from the weighted average rate of the trading session for a given foreign currency and from the mandatory sale rate in other banks, in either direction.
Transactions involving legal entities and individual entrepreneurs not related to mandatory sale will be conducted on the over-the-counter segment of the currency market, i.e., directly between clients and banks. The rates of foreign currency purchase and sale transactions, settlement periods, and crediting of funds to client accounts when conducting transactions on the over-the-counter market will be determined by contractual relations between the bank and the client, which will contribute to increased competition between banks and, consequently, to the development of banking services and improvement of their quality.