Thread: Exchange Rate of Belarussian Roubles to USD/Euro

Originally Posted by Hanna

Thank you for explaining. How frustrating for people, and how awkward that the government isn't up front about their plans (but then, governments often are not... Like for example in Ireland recently!)

What are the main reasons for the economic problems that brought this devaluation about?

The main thing that there were not any plans. There were fantastic dreams and no one program to realise them.
The main reason as I can see it: the government always assure people that our economics work effectively and very well, agriculture is on the peak and gives huge benefits, that everything is cool and all people deserve better life, just for stay at rule. This lullaby is continuing to spread out thru all the mass media, 'cause most of them are governmental. Then people were given some extra money they didn't earn and this mass started to buy and spend out monetary reserves on imported products. In fact belarusians buy imported products on the sum 9 billions more than sell abroad, in a year. Before that gap was fullfilled by credits from IMF and Russia. Now they set very rough terms. And the government got paralized. They simply don't know what to do...

Originally Posted by WhiteKnight

that gap was fullfilled by credits from IMF and Russia. Now they set very rough terms. And the government got paralized. They simply don't know what to do...

The IMF is poison for any country, because loans from them, come with conditions.
Recently Ireland was almost forced to borrow from IMF and people were furious - they did NOT want it and I can't understand why it happened despite, almost everyone in Ireland being against it. This was covered quite extensively in British media.

Yes, I see an "unholy" mix of socialist economical policies here, and people who exist on very low incomes.... while at the same time there are some people who are shopping in designer shops and driving four wheel luxury cars - at least in Minsk.
Don't know what to make of it!

Some technical products are more expensive here than in the EU.
Some things are very, very cheap, almost free.

Most public buildings, apartment buildings, parks, pavements, roads and infrastructure seem to have been renovated and are clean and in a good state - much better than what I saw in Romania, Moldova and Ukraine. That is surely a good thing,

I respect the fact that they are trying, because I think it's a lot more fair and sensib than what has happened in Russia for example. I just hope (for the sake of people in Belarus) that they are not attempting to do something that is impossible.

Actually, we had quite a "strange" mix of capitalism and socialism in Sweden too, for all my life. Government plans and sponsored goods and housing alongside private industry etc. But our "experiment" started almost 100 years ago and we were lucky not to have anything destroyed by war or the chaos that took over in Eastern Europe in the 90s. And a lot of the socialist practices that S wedishpeople were used to, got scrapped in the 90s.
Is it possible to mix the two like Belarus is doing, in the 21st century?
I don't know...

Originally Posted by Hanna

The IMF is poison for any country, because loans from them, come with conditions.
Recently Ireland was almost forced to borrow from IMF and people were furious - they did NOT want it and I can't understand why it happened despite, almost everyone in Ireland being against it. This was covered quite extensively in British media.

I don't think that a default in a whole financial sector of a country is better than borowing from IMF. If they started to play the game they should follow the rules. I don't know countries that isn't involved into globalisation... Maybe Northern Korea. Or anarchic african countries, It's hard to believe that people there live happy life. To my mind everything has advantages and disadvantages so to live in modern world and stay relatively independent you should play very well.

Originally Posted by Hanna

Most public buildings, apartment buildings, parks, pavements, roads and infrastructure seem to have been renovated and are clean and in a good state - much better than what I saw in Romania, Moldova and Ukraine. That is surely a good thing,

I absolutly agree with you, it's a very good thing, and it should be so, but everything you can see - roads, buildings, tiny vilages and agrotowns are built on the money from resale cheap russian petrol to EU, until the last time our economics were based on it, and on extremely cheap gas from kind Russia. They sponsored us for about 20 years. Having so available resources, our products were very cheap and by the price they could be very competitive versus other CIS members. And we didn't need to provide modernisation of our enterprises, until Russia said, enough, it's time to pay. You know, our opposion always loudly yell that, we can loose our independence and became Russian "gubernia" with russian order and rules of buisness if we would have very close friendship with them. If in power would be more soft person instead of Lukashenko we would loang time ago were in Russia. Only Luka could manage to suck Russian resources for 20 years and gave nothing in return. But it seems that now Lukashenko drove russian government mad. They raised the price of resources and they don't want to lend some billions bucks. . And we have no way but sell governmental estate to russian corporations (read "oligarchs") may be then they give us credit or reduce the price on gas to live some more in utopia... Everything is obvious and always was so. In the times of wellness, our government should spend money on modernisation, alternative energetics and resorces economy not only on beautiful buildings and four wheel luxury cars for officials, it remains USSR and it can be seen everywere.
We should invested in our independence and future wellness. You may have not seen but almost nobody in Belarus lives green economy life like they do in Europe. We don't collect recyclable packs, we never mind about water and electricity economy. Everything was given to us for almost free prices. And we don't know the real, independent value of it.

Originally Posted by Hanna

I respect the fact that they are trying, because I think it's a lot more fair and sensib than what has happened in Russia for example. I just hope (for the sake of people in Belarus) that they are not attempting to do something that is impossible.

Nothing is impossible, all we should done - change old, low educated people in the power and everything will be ok! I think it will be so anyway, but with smart power it would be faster and better ).

Originally Posted by Hanna

Actually, we had quite a "strange" mix of capitalism and socialism in Sweden too, for all my life. Government plans and sponsored goods and housing alongside private industry etc. But our "experiment" started almost 100 years ago and we were lucky not to have anything destroyed by war or the chaos that took over in Eastern Europe in the 90s. And a lot of the socialist practices that S wedishpeople were used to, got scrapped in the 90s.
Is it possible to mix the two like Belarus is doing, in the 21st century?
I don't know...

Neither do I... But I hope that we'll find the right way)