When Belarusians woke up on Monday, May 23rd, one U.S. Dollar bought 3,145.00 Rubles. The next morning, one U.S. Dollar bought 4,930.00 rubles. Within one day, the National Bank of the Republic of Belarus devalued its currency by 56.76%.
According to Telegraf, in February, 2011:
Belarusian banking system is working smoothly, and it is not planned to make any changes to its operation, including the ruble devaluation, in the near future. This was reported by Chairman of the National Bank of Belarus Petr Prokopovich to President of Belarus Alexander Lukashenko on February 22.
The IMF was involved with a monetary disaster? Who knew?
Other “experts” are cheering a central bank turning its entire citizenry destitute in one day:
- BBC: “What they’ve done today is a positive step,” says economist Alex Pivovarsky of the European Bank for Reconstruction and Development.
He explains that Belarus has lost international competitiveness over recent years, not least because its government raised wages significantly last year in the run-up to elections.”
- WSJ: “A cheaper Belarussian ruble may make the country’s potash fertilizer exports more competitive, said Charlie Robertson, chief economist at Renaissance Capital.”
A sign of things to come?