The evolution of the exchange rate regime in Belarus.

Abstract

The article describes the evolution of exchange rate regimes in Belarus. The main factors of choice of exchange rate regime are summarized. The basic stages of the evolution of the exchange rate regime are pointed out. The main trend in the exchange rate regime in the Republic of Belarus is identified: the movement from fixed to floating exchange rate regime. It is proved that the exchange rate policy is formed on the basis of balancing the purposes of internal and external balance. However, strengthening the functions of the exchange rate as a tool to curb inflation generally leads to a decrease in its effectiveness as a tool for reducing the external deficit. It is revealed that the specific exchange rate policy is determined by the nature of the economy of the Republic of Belarus as a small open economy and its high import capacity. The transition to a floating exchange rate and its sustainability involves structural adjustment of the national economy and strengthening the role of non-monetary factors in maintaining competitiveness.