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Belarus Just Devalued Its Currency By 56% - Zerohedge

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http://www.zerohedge.com/article/belarus-just-devalued-its-currency-56

When it comes to currency warfare, one can be polite and gentlemanly about it, like Brazil for instance, which every day, and sometimes on several occasions during the day, will proceed to buy dollars in an attempt to keep one's own currency lower. Or one can do what the Belarus central bank just did, and officially devalue one's currency, in this case the Belarus ruble, by 56% overnight, against every currency out there.

http://www.kommersant.ru/doc/1646235

The National Bank of Belarus (NBB) is sharply devaluing the official rate of Belarusian ruble. The exchange rate as of May 24 was set at 4,930 rubles per dollar. a decrease of 56% from the 23 May.

The National Bank of Belarus has officially confirmed a sharp depreciation of the currency. On its website it has published the official exchange rate of Belarusian ruble: $ 1 - Br4930 (a decrease of 56,3% to the rate on 23 May), 1 Euro - Br6914, 82 (a decrease of 53,1%), 1 Russian ruble - Br173 , 95 (a decrease of 53,9%). The official rate for May 23 was set at 3,155 rubles per dollar.

And to think with the US we get all the silly games from Timmy and Ben telling us all how they believe in a strong dollar. Now this is the way to do it.

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When I was last in Belarus, in 1998, I got 17 million Belarussian roubles for 50 Deutschmarks, so the rate was approximately one million roubles to the £.

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When I was last in Belarus, in 1998, I got 17 million Belarussian roubles for 50 Deutschmarks, so the rate was approximately one million roubles to the £.

Belarus rebased in 2000 taking three zeros off the end. So that equates to 1000 to the pound in today's money

tim

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The country has been run by its dictator president, Aleksandr Lukashenko, since 1994. Private business is virtually non-existent. In 2005, the government re-nationalized a number of private companies. In that year, Belarus was listed by the US as Europe's only remaining outpost of tyranny.

The government does not permit foreigners to own land. 90 percent of agricultural land is state owned.

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Don't personally know much about Belarus, but they do have decent ice hockey players, and frigging amazing looking women.

I mean, wowsa... hubba hubba.

much more hotness here

YH6T4604.jpg

EDIT: How can you compete with a nation who has birds like this? Our lad mag hotties are a bunch of silicon stuffed, fat slags in comparison.

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http://www.zerohedge.com/article/welcome-hyperinflation-hell-following-currency-devaluation-belarus-economy-implodes-sets-blu

"A ‘91-style meltdown is almost inevitable." So says Alexei Moiseev, chief economist at VTB Capital, the investment-banking arm of Russia’s second-largest lender, discussing the imminent economic catastrophe that is sure to engulf Belarus following the surprise devaluation of the country's currency by over 50%, which we announced on Monday. "Unless Belarus heeds Russia’s call for mass privatization of state assets, it is headed for “hyperinflation, massive un- and under-employment, and a shutdown of production" Moiseev concludes. Ah: "privatization" as Greece is about to learn, the lovely word that describes a fire sale of assets to one's creditors, courtesy of a "globalized" new world order. Ironically, this is precisely the warning that will be lobbed at each country in the developed world, as the global race to devalue currencies, first against each other on a relative basis, and ultimately against hard currencies, or on an absolute basis, as the world realizes that there simply is not enough cash flow to cover the interest payments on a debt load, in both the public and private sectors, that continues to rise at an astronomic rate, even as the world prepares to exit from the latest transitory, centrally-planned bounce in the Great Financial Crisis-cum-Depression that started in earnest in 2007 and has been progressing ever since. Ultimately, Belarus will succumb to hyperinflation, as will each and every other government seeking to devalue its currency (hint: all of them)

The follow up zerohedge post on this news.

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Belarus rebased in 2000 taking three zeros off the end. So that equates to 1000 to the pound in today's money

tim

How much was this worth then?

Belarus-1999-Bill-5000000-Obverse.jpg

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http://www.zerohedge.com/news/2014-12-22/belarus-full-blown-hyperinflation-panic-blocks-news-online-stores-bans-all-fx-tradin

"We have to do something with these Belarussian rubles," exclaims one Belarussian as she shops to turn worthless rubles (BYR) into physical assets. As AFP reports, The Belarussian currency was dragged down by the slide of the Russian ruble last week, leading authorities to impose draconian measures, forbid price increases even for imported goods, and warn people against panic. Now, however, in an effort to stem the flood of hyperinflating domestic prices, authorities have blocked online stores and news websites to stop the run on banks and shops as people scramble to secure their savings. One of the blocked news websites noted, it "looks like the authorities want to turn light panic over the fall of the Belarussian ruble into a real one," calling the blockages "December insanity."

And indeed they have stepped up the insanity, extending the halt in FX trading...

Today the Belarus central bank shocked its own population when it also announced full-blown capital controls designed, releasing additional measures to stem the "negative trends of currency and financial markets " including raising mandatory sales of FX revenue to 0%, suspending all OTC FX trading (so pretty much all FX), introducing a 30% fee on all FX purchases, "recommending" that banks halt BYR lending until February, and sending 1-yr interest rates on liquidity operations with banks to a eyewatering 50% in hopes this leads to an increase in BYR deposit rates. It will. What it won't lead to is stabilization in the deposit market as the natives realize they too are next up on the hyperinflation train.

Still I'm sure it's contained....

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http://naviny.by/rubrics/english/2014/12/21/ic_articles_259_187824

The moratorium is aimed at preventing consumer prices from rising and ensuring a wide range of goods in the consumer market, explains the Council of Ministers press office.

The government agencies responsible for the manufacture of consumer goods have been ordered to ensure an increase in the supply of goods to the retail sector and prevent a rise in producer prices.

The directive warns that an agency’s failure to carry out the order will lead to the dismissal of the head of the agency.

The trade ministry, the regional executive committees and the Minsk City Executive Committee have been tasked with preventing a rise in consumer prices and ensure that a broad range of goods is available at retail outlets and online stores.

The State Customs Committee and the interior ministry have been strictly ordered to effectively prevent illegal imports of goods.

Sounds like the old Roman Empire when edicts where issued that prices could not increase!

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Don't personally know much about Belarus, but they do have decent ice hockey players, and frigging amazing looking women.

I mean, wowsa... hubba hubba.

much more hotness here

YH6T4604.jpg

EDIT: How can you compete with a nation who has birds like this? Our lad mag hotties are a bunch of silicon stuffed, fat slags in comparison.

In other words sex tourism trips to Minsk have just halved in price! Fill ya boots lads.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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