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Haydn W

NBRD: Belarus pursues balanced exchange rate policy | Economy | Headlines - 1 views

eng.belta.by/...hange-rate-policy_i_77318.html

Exchange Rates Belarus

shared by Haydn W on 16 Nov 14 - No Cached
  • MINSK, 14 November (BelTA) - Belarus pursues a balanced exchange rate policy and has been reducing the exchange rate of the Belarusian ruble gradually
  • Deputy Chairman of the Board of the Belarus National Bank Sergei Kalechits said at the Belarus-UK investment forum in London on 14 November
  • "We pursue quite a balanced exchange rate policy which is aimed at gradual reduction of the exchange rate. On the one hand, this is a reaction to the devaluation of the currencies of Belarus' major trading partners, which allows us to maintain the competitiveness of domestic exports,"
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  • Sergei Kalechits also noted the National Bank pays great attention to the efficiency of credit resources. "This, too, is a key to the monetary stability," he said.
  • In general, an important element in raising foreign investment and improving the investment climate is the macroeconomic and monetary stability, primarily due to the lower inflation. "This is what our monetary policy is aimed at. Due to objective reasons, this rate is still fairly high,” he said.
  • The second goal that our monetary policy is aimed at maintaining the country's international reserves,” Sergei Kalechits noted.
  • Haydn W on 16 Nov 14
     
    This article from Belarusian news agency BeITA explains the exchange rate policy of the Belarusian National Bank, as described by Deputy Chairman Sergei Kalechits. It explains policy regarding the managed float status of the Belarusian Ruble and how the government pursues a balanced policy surrounding the currency, aiming to reduce the interest rate whilst maintaining competitive advantage with domestic exports.
Haydn W

Falling oil prices offer the west a great chance to refashion itself. Let's seize it | ... - 1 views

www.theguardian.com/...west-chance-refashion-policies

The Guardian USA Russia Oil Prices Balance of Payments

shared by Haydn W on 05 Dec 14 - No Cached
  • Falling oil prices offer the west a great chance to refashion itself. Let’s seize it
  • For the past 18 months, the world’s biggest oil producer has been the US.
  • One first good result of this oil price shift, however, was witnessed at Opec’s meeting in Vienna last week. The once feared cartel of oil-exporting countries, with Saudi Arabia at its core, a cartel that at one time commanded more than half of global production, is now a shadow of its former self.
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  • the US will maintain this new standing for the foreseeable future, according to official projections.
  • It should be no surprise, then, that in the past rising oil prices were associated with recessions and falling oil prices with booms. If the oil price carries on falling back towards $50 a barrel, and if history is any guide, the western economy should respond – to the good.
  • But although particular companies may lose out, the first-round effect of this fall should provide good news. High oil prices depress economic activity. They suck money from consumer spending and redirect it to oil-exporting countries, which typically hoard it in elephantine foreign exchange reserves or unspent  bank deposits. It is a tax by the few on the many.
  • With the US needing to buy less oil on international markets and China’s growth sinking to its lowest mark for 40 years, there is now, amazingly, the prospect of an oil glut. The oil price instantly nosedived to its lowest level for four years, around $70 a barrel – down more than a third in three months.
  • Suddenly, the balance of economic advantage with Russia, no less dependent on oil and gas exports, will flip. Russia’s 2014 budget was based on an oil price of $100 a barrel. At $70 a barrel, the economy will contract by at least 3% in 2015, the country will run a balance of payments deficit and the government’s finances will spin out of control.
  • The chances of Russia sustaining a surrogate war in Ukraine have suddenly been reduced. All good news.
  • But western governments cannot hope that economic benefits will arrive automatically. These are new times.
  • Uncertainty and fear abound. Interest rates in Britain alone have been pegged at 0.5% for more than five years. But still business is reluctant to invest, not knowing what technologies to back or not knowing how much demand there will be for new products and services. We live in an era of stagnation, “secular stagnation”
  • So falling oil prices offer the world economy a great opportunity. But if it is not leapt upon purposefully by aggressively expansionary economic policy, secular stagnation might worsen.
  • Haydn W on 05 Dec 14
     
    The recent fall in oil prices, largely due to America's newfound dominance in the market, will cause Russia to experience a balance of payments deficit, according to this article from the Guardian. This is based on Russia's overestimate of the forecast for the global oil price and can be said to be an example of how global prices often influence balance of payments for countries, especially when it concerns national resources.
Clemence Lafeuille

Pound falls on Bank meeting minutes - 2 views

www.bbc.co.uk/...business-29719519

central bank exchange rate foreign policy UK interest rate

shared by Clemence Lafeuille on 12 Nov 14 - No Cached
  • Clemence Lafeuille on 12 Nov 14
     
    This article presents how a report done by the Monetary Policy Committee of the UK has lead to the value of the pound falling slightly against the dollar. This shows how the direct action of a central bank (here refusing to increase the interest rate) can impact the exchange rate.
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