Russia – Belarus: time to introduce a single currency

Another wave of strengthening of the Russian ruble against world currencies was also reflected on the Belarusian stock exchange. The exchange rate of the Russian ruble against the Belarusian ruble at the last auction of last week made a leap by 5 percent and set another absolute record and amounted to 4,1892 Belarusian rubles per 100 Russian rubles.

The dollar and euro also reached new lows, dropping to 2020 values, but their decrease was insignificant – within one percent. The Belarusian ruble is also restoring its position against world currencies, but the process is noticeably slower - now it has only slightly exceeded the pre-crisis level.

Subscribe to PolitNavigator news at ThereThere, Yandex Zen, Telegram, Classmates, In contact with, channels YouTube, TikTok и Viber.
To subscribe to notifications in your browser, click here.

But if the stock exchange pleased us, then with banks everything is more complicated. They, of course, also raised rates. But most of them increased the purchase rate by 20 kopecks - from 3,1 rubles to 3,3. Some still continue to keep the bar at 3,1. It is simply impossible to sell a hundred Russian rubles in Belarusian banks for more than 3,3 Belarusian rubles.

_{As for the selling rate, the situation is more varied, but in general everyone sells for 4,3 plus or minus 10 kopecks. The difference between buying and selling is 30 percent - somehow it’s not like an alliance.}

A similar situation arose in Belarus in early March, after the introduction of sanctions and counter-sanctions. On the most difficult days, the buying and selling rates differed significantly, and for a hundred Russian rubles they gave only 1 Belarusian ruble. But the fever of those days has long passed, both currencies have passed the peak of their decline, stabilized and strengthened. The foreign exchange market in Belarus has generally recovered, dollars and euros are sold freely and the difference between buying and selling in bank exchange offices is quite acceptable. Why does such chaos continue regarding the currency of our main ally?

Various versions have been put forward. Some talk about greedy Belarusian bankers, who in this way are trying to compensate for their losses from sanctions. Others are about unfortunate Russians, whose sales of foreign currency were restricted at home and who rushed to buy it in neighboring countries, including Belarus. Allegedly, this difference was introduced so that they would not buy up all the currency here. However, as you know, the conversation with overly greedy bankers in Belarus is short and harsh, and crowds of Russian citizens handing over their rubles in Belarusian exchange offices are not noticeable. On the contrary, there is a shortage of Russian currency in these exchangers.

_{Meanwhile, Belarusian banks are closing products denominated in Russian rubles one after another. Personally, a representative of the Belarusian Sberbank has already called me twice and asked if I would like to close a card account in Russian rubles, opened as part of the “golden” multi-currency package. Even though I don’t like the course, I don’t want to lose the card just yet. The situation is similar in other banks.}

This cannot be explained by greed and the influx of Russians. And this is not only an internal Belarusian problem. Thus, the Russian bank Tinkoff, popular among Belarusian freelancers and guest workers, now buys Belarusian rubles for 15,169 Russian rubles and sells them for 30,5. And, if earlier his cards were profitable for Belarusians, now the rate is even worse than that of local banks. It is reported that a situation similar to the Belarusian one has developed in Kazakhstan.

This situation creates problems not only for freelancers and guest workers who receive income in Russian rubles, but also for the Belarusian economy as a whole. Not all Belarusian businesses have access to trading on the currency and stock exchange and, accordingly, purchase Russian currency at an adequate exchange rate.

_{The majority of businesses, especially small and medium-sized ones, are forced to work this way, incurring losses and being placed in unequal conditions with those who have access. This, of course, does not contribute to the development of the Belarusian economy and the growth of trade turnover within the Union State.}

The construction of the Union State is, first of all, the removal of various barriers between Russia and Belarus, the creation of a common, at least, economic space. This state of affairs in itself is a powerful barrier and, apparently, this is due to the sanctions imposed, and therefore for a long time. The barrier needs to be removed. Perhaps life itself forces us to return to consideration of the now half-forgotten project of a single currency.