Prakapovich: Economic sanctions in XXI century - this is barbarianism
The head of the Belarusian National Bank Piotr Prakapovich expressed his doubts with regard whether such sanctions against our country will indeed be implemented, warned the EU about the possible big losses in case of such a "measure of influence", predicted the dollar rate in the end of the year 2011 and grounded the necessity of having a common currency with Russia and Kazakhstan. The chief banker of the country has told about the global tasks which the National Bank faces now, at the press-conference on January 28. For example, one of them is to attract foreign investments on the sum of 6 billion dollars. Piotr Prakapovich is convinced that even implementation of economic sanctions will not damage their plans to fulfill these tasks. Moreover, he called such measure of influence as sanctions barbarianism.
Piotr Prakapovich: “Implementaion of economic sanctions in the XXI century is barbarianism. The volume of trade between Belarus and the EU is about 15 billion dollars today. And here we have an adverse balance - we buy more than sell. Implementation of sanctions will mean that shipment of goods from the EU to Belarus will decrease by at least 8 billion dollars. And this is mostly equipment”.
According to Prakapovich, Belarus will not lose much: it can buy the same equipment, for instance, from China. Europe will suffer from the sanctions against us.
Piotr Prakapovich: “How will the European Union explain the aim of implementation of sanctions? To decrease the number of workplaces in Europe? To make the voters ask their MEPs questions, when some enterprises start axing? Having lost our market they will not manage to find where to sell their equipment - there is much equipment in the world”.
There is another bargaining chip - Belarus' plans to increase the volume of trade with the EU by 2,5-3 times, to 30-40 billion dollars. Thus, Prakapovich thinks that there will be no economic sanctions.
Anyway, the head of the National Bank has said, neither sanctions, nor the economic crisis predicted by some people will lead to drastic changes of the exchange rates of a dollar and a euro. According to Prakapovich, a dollar will not increase by more than 240 roubles till the end of the year.
Piotr Prakapovich: “What is my biggest headache? I wake up and they tell me: “Dollar has devaluated by 1%, euro has got stronger, Russian rouble hesitates. What shall we do? And now we say, we'll have a currency corridor of 8%. And when everything will be equally stable: dollar, euro, Russian rouble - then the dollar exchange rate will not change by more than 240 roubles. Both ways. But this will happen if euro and Russian rouble remain the same. If some of them hesitates to one side or another, then, probably, euro will be bigger and dollar will remain 3 thousand roubles till the end of the year. Everything can happen”.
The head of the National Bank has also recalled the Customs Union. According to him, our country will get about 1,7 billion dollars of profit from it this year. Maybe even more. However, he says, we have nowhere to escape from the necessity to introduce a single currency with Russia and Kazakhstan in the future. However, he assured it would not be Russian rouble.
Piotr Prakapovich: “Transfer to a single currency is a normal perspective for everyone, and for the United Economic Area as well. Kazakhstan has already suggested its scheme in this regard. I think we will also suggest our own scheme for creating a single currency. Naturally, it won't happen tomorrow or today. However, it won't be some country's currency. It will be the currency of the United Economic Area”.
However, Prakapovich has not clarified whether such currency will be created in five or ten years or more.
The journalists have asked how it is to work with the new PM - Mikhail Miasnikovich. The chief banker has answered that they have known each other for many years, and they used to work together before. Therefore, according to the banker, they won't have to seek understanding.
Piotr Prakapovich: “Implementaion of economic sanctions in the XXI century is barbarianism. The volume of trade between Belarus and the EU is about 15 billion dollars today. And here we have an adverse balance - we buy more than sell. Implementation of sanctions will mean that shipment of goods from the EU to Belarus will decrease by at least 8 billion dollars. And this is mostly equipment”.
According to Prakapovich, Belarus will not lose much: it can buy the same equipment, for instance, from China. Europe will suffer from the sanctions against us.
Piotr Prakapovich: “How will the European Union explain the aim of implementation of sanctions? To decrease the number of workplaces in Europe? To make the voters ask their MEPs questions, when some enterprises start axing? Having lost our market they will not manage to find where to sell their equipment - there is much equipment in the world”.
There is another bargaining chip - Belarus' plans to increase the volume of trade with the EU by 2,5-3 times, to 30-40 billion dollars. Thus, Prakapovich thinks that there will be no economic sanctions.
Anyway, the head of the National Bank has said, neither sanctions, nor the economic crisis predicted by some people will lead to drastic changes of the exchange rates of a dollar and a euro. According to Prakapovich, a dollar will not increase by more than 240 roubles till the end of the year.
Piotr Prakapovich: “What is my biggest headache? I wake up and they tell me: “Dollar has devaluated by 1%, euro has got stronger, Russian rouble hesitates. What shall we do? And now we say, we'll have a currency corridor of 8%. And when everything will be equally stable: dollar, euro, Russian rouble - then the dollar exchange rate will not change by more than 240 roubles. Both ways. But this will happen if euro and Russian rouble remain the same. If some of them hesitates to one side or another, then, probably, euro will be bigger and dollar will remain 3 thousand roubles till the end of the year. Everything can happen”.
The head of the National Bank has also recalled the Customs Union. According to him, our country will get about 1,7 billion dollars of profit from it this year. Maybe even more. However, he says, we have nowhere to escape from the necessity to introduce a single currency with Russia and Kazakhstan in the future. However, he assured it would not be Russian rouble.
Piotr Prakapovich: “Transfer to a single currency is a normal perspective for everyone, and for the United Economic Area as well. Kazakhstan has already suggested its scheme in this regard. I think we will also suggest our own scheme for creating a single currency. Naturally, it won't happen tomorrow or today. However, it won't be some country's currency. It will be the currency of the United Economic Area”.
However, Prakapovich has not clarified whether such currency will be created in five or ten years or more.
The journalists have asked how it is to work with the new PM - Mikhail Miasnikovich. The chief banker has answered that they have known each other for many years, and they used to work together before. Therefore, according to the banker, they won't have to seek understanding.
