The Belarus central bank said on Monday it would devalue the rouble's official exchange rate and unify all other rates around it, confirming rumours that had earlier boosted the currency on the interbank market. In a statement on its website, the central bank said it would lower the official exchange rate by 36 percent from Tuesday, to 4,930 roubles per dollar from a current 3,155 roubles per dollar.
It said all foreign currency trading would in future be done at the official rate plus or minus two percent, signalling an end to the current system of multiple exchange rates. Belarussian Prime Minister Mikhail Myasnikovich had said on Friday that the government and the central bank would take new steps on the currency market this week, but gave no details.
Authorities said when the rouble was floated on the interbank market on April 19 that a unified exchange rate would be pursued once an equilibrium currency value had been found.
The rouble strengthened on the volatile interbank market on Monday ahead of the announcement - to 6,400-6,800 per dollar from 7,800-8,400 in the previous session, according to bank dealers - extending gains made in the previous session. Market players said earlier on Monday that the central bank would have to restart interventions if it wanted the market and official rates to converge.
"It means the central bank must sell (dollars) at this rate," said one dealer. "Otherwise this step makes no sense." The former Soviet republic's currency had firmed on Friday for the first time since its April float after Russia signalled a regional loan to Belarus could be agreed next month.