On October 6, the President of Belarus arranged a government rebuke about unreasonably inflated price increases relative to the current inflation in Belarus. And these circumstances do take place. With inflation officially set at 18%, in fact, prices for some commodity items have jumped almost twice.
But how to understand this trend in the conditions of the falling US dollar, the exchange rate of which has always been an indicator of inflationary processes in the Republic of Belarus.
The answer is simple. Just two reasons:
1 - The growth of the Russian ruble to the Belarusian by 30%.
Taking into account the fact that the largest volume of trade turnover of the Republic of Belarus falls on Russia, and taking into account the imposed embargo even more, this circumstance directly served to increase prices for all products in the cost of which the Russian equivalent. Of course, this could have been avoided and not devalued BYN relative to RUB, but left at the level of standard parity, as before (before the Ukrainian crisis).
2 - Risks inherent in the price
All commercial structures continue to operate under conditions of some uncertainty regarding the stability of the monetary unit in which they pay for their goods - BYN. Business is looking to the future and it does not have one hundred percent confidence in BYN, given what is happening in global monetary policy.
If, conditionally, we switch to the market tomorrow, then in the event of a fall in BYN, who will compensate this business for its losses working capital (so that you can buy raw materials again later/goods, but at new prices). And no one can give compensation guarantees yet, because no one yet knows exactly what will happen tomorrow.
Maybe in vain discount rate The National Bank of the Republic of Belarus decided to reduce !?
Government reprimand: why prices are rising in Belarus – a simple answer – Something like That!