The Belarussian rouble slumped to 8,600 roubles against the dollar at the first-ever free-trade session aimed at bringing it closer to a full free float while easing the current account deficit. This is 38 percent weaker than the official rate of 5,347 roubles per dollar set on Tuesday by the central bank.
Central bank deputy chairman Taras Nadolny told reporters he expected the free trade rate to strengthen soon, and it could converge with the official rate in about two months, he said. The International Monetary Fund (IMF), from which Minsk is seeking up to $8 billion in aid, said on Tuesday that the trade must be genuinely free and should soon lead to a full free float.
However, Nadolny said Minsk could cancel its aid request. "A final decision (on requesting an IMF loan) has not been made yet," he said. "I do not rule out that we will be able to cope on our own. Let us see how the extra (rouble) trading session works." The bank has introduced partial liberalisation of the rouble as of Wednesday, promising that at the extra session the rouble would trade freely against foreign currencies such as the dollar and the euro.
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