Commentary to Decree No. 505 of 18 December 2015

    On 18 December Belarus President Aleksandr Lukashenko signed decree No. 505 “Concerning the main guidelines of the monetary policy of Belarus for 2016”.

    In 2016, the main priority of the Belarusian monetary policy will be the reduction of inflation to 12%. This target will be fulfilled by stepping up control over the money supply. The growth of the average money supply will make up 16-20%.

    The flexible exchange rate policy aimed at ensuring the dynamics of the exchange rate on the basis of demand and supply on the foreign exchange market will be implemented in 2016.

    Plans have been made to raise the gold and foreign exchange reserves by $0.3 billion.

    The refinancing rate will be reduced to 21-24% per annum by late 2016.

    The claims of banks on the economy will rise by 14-18% in 2016.