14 November, Minsk /BELTA correspondent/. The National Bank of Belarus predicts a halt in inflation growth. This issue was discussed on 14 November during a working meeting between the Head of State Alexander Lukashenko and the Chairperson of the Board of the National Bank Nadezhda Ermakova, BELTA was informed by the press service of the Belarusian leader. "Today I am interested not only in strategic, global issues. I know that the situation in the currency market is normal. I would like to hear your point of view regarding inflationary processes and the situation in the consumer market in this regard," noted Alexander Lukashenko. He also asked Nadezhda Ermakova to present her assessment of the situation in the banking sector as a whole and the system of commercial banks. "How are our banks developing today, what is their position?" the President inquired. "Because I see that due to certain Western policies, individual attempts are being made to pressure our banks through various ratings and the like. We must take this into account, and we must do everything to support our banks, commercial banks, which finance programs and provide loans to our enterprises." The Head of State also inquired about the problems arising in connection with the introduction of a single exchange rate. "As for inflation, the change in the exchange rate has also had its impact on this process. Naturally, a number of other factors that have emerged in the economy due to a shortage of gold and foreign exchange reserves, and a rush demand for currency and goods. All this, of course, has led to inflation. Today, the exchange rate has stabilized at one level. Our view is that there will be no sharp fluctuations in the exchange rate in the near future," noted the Head of the National Bank. The growth of inflation was also to some extent facilitated by the inclusion of an inflated exchange rate in the prices of goods. The regulation of prices within the framework of a single customs space and the increase in the cost of energy resources also had their impact. "If nothing changes today, except that prices for utility payments will have to be adjusted slightly, then, probably, the growth of inflation should stop. And the fact that 19% has been calculated for next year is probably realistic if we work effectively and do not inflate the money supply, so as not to create additional pressure on the exchange," believes Nadezhda Ermakova.The President's main requirement is for the economy to operate effectively, and for the measures taken in the area of monetary policy to assist and stimulate the economy's performance. The primary outcome should be a reduction in inflation, so that the negative factors that caused it do not carry over into the next year. "We cannot do without loans for now. All of this is necessary, but within reasonable limits, so as not to affect the expenditure of gold and foreign exchange reserves and not to additionally affect inflation. That is, there should be no additional emission," believes Nadezhda Ermakova. Overall, she assessed the situation on the currency market positively. "The population has understood that currency will be available at exchange offices. Since September 14, on a net basis, the population has already sold $460 million to banks. Of this purchased currency, banks have sold over $350 million on the exchange. This indicates that the population has calmed down and there are no movements in one direction or the other," said Nadezhda Ermakova. "Yes, the exchange rate has changed. Today it is holding at the level of Br8.6-8.7 thousand." The situation on the credit market is also developing normally. "We are tightening the money supply. The refinancing rate has been increased. Naturally, the rates on loans for enterprises have risen. This is done with the aim of reducing the money supply so that enterprises use their own funds more effectively. These are monetary instruments to curb inflation," noted the head of the National Bank. "Furthermore, the increase in the refinancing rate has led to banks increasing the rates on population deposits. That is, it is becoming more profitable to keep funds in deposits." After replenishing the outflow of funds in Belarusian ruble deposits, which occurred at the beginning of the year, the growth to date is Br1 trillion. 158 billion. A gradual inflow of foreign currency deposits is also noted. As for exchange rate formation, the National Bank sometimes has to intervene. Since October 20, the volume of net interventions has amounted to $23 million. "We sell on one day and buy on another, in order to avoid sharp exchange rate fluctuations," explained the head of the National Bank. The situation on the currency market also shows a number of other positive factors. Thus, after the introduction of a single trading session, the volume of mandatory sale of currency by exporters has increased by approximately 25%, and accounts receivable are gradually decreasing. Overall, the President approved the policy pursued by the National Bank and set the task of further implementing measures aimed at the effective operation of the economy.-0-

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