Page 28 - BELRptApr19

7.0 FX
Belarus -FX 2011 2012 2013 2014 2015 2016 2017
Currency (units per USD) (eop) 0.8350 0.8570 0.9510 1.1850 1.8569 1.9656 2.029
Currency (units per EUR) (average)
0.8051 1.0778 1.1834 1.3220 1.7828 2.2005 2.1783
Currency (units per USD) (average) 0.4975 0.8337 0.8880 1.0224 1.5926 1.9885 1.9318
Source: National Bank of Belarus
7.1 FX issues
Since 1 October 2017 the amount of a company’s income in foreign currency subject to mandatory sale has been reduced from 20% to 10%. This regulatory measure dates back to 1996 and the rate of mandatory foreign currency conversion has ranged from 10% to 60%. According to the Main Directions of Monetary Policy adopted by the Belarusian Government, mandatory sale of foreign currency will be totally abolished in 2018.
Additionally, during the last days of 2017, the National Bank abolished target purchase of foreign currency and approved a new version of the Instruction on currency exchange transactions. Starting from 11 April 2018, companies will be no longer be obliged to strictly adhere to the purpose for which foreign currency is purchased.
8.0 Financial & capital markets 8.1 Bank sector overview
The financial sector remains a contingent liability to the government and a potential risk for macroeconomic stability, despite some improvements. Regulatory NPLs (the three riskiest categories) have stabilised, reaching 12.8% of gross credit exposure in 3Q17 due to the improved macroeconomic backdrop leading to lower interest rates and lower exchange rate volatility.
Capitalisation levels have improved somewhat, but remain modest given high credit risks. The large presence of the public sector (65% of assets) creates fiscal risks for the sovereign due to the potential need of further capital injections, execution of guarantees and issuance of securities in exchange of loan transfers.
EBRD President Suma Chakrabarti confirmed plans to buy a stake in Belinvestbank . “ We have discussed this matter. During our first meeting with the Belarusian president in 2015, the focus was on this project. In my opinion, over the past three to four years we have made significant progress. First of all, Belinvestbank has reported considerable profits for the first time in many
28 BELARUS Country Report April 2019
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