OREANDA-NEWS. April 12, 2011. The National Bank of Belarus (NBB) will not adopt any new currency regulations until Belarus receives a USD 1 billion state loan from Russia, which is expected to be extended within a month, a source close to the NBB stated.

“The National Bank has already adopted decisions to regulate the currency market and adjust the demand for exchange. The regulator does not believe additional amendments are advisable now,” he said.

The NBB has recently allowed for an increase in the FX trading band on the interbank market from plus/minus 2% to 10% around the official exchange rate. Traders call the move insufficient: on the black market, the band exceeds plus/minus 25%.

The NBB was expected to make some decision to improve the situation with foreign exchange in exchange points, however, the situation is unlikely to change until Russia lends USD 1 billion. Tensions are likely to remain even after Belarus gets the loan, because the size of the loan is equivalent to the average monthly demand for cash exchange from households (Belarusians bought an equivalent of USD 1.7 billion dollars in exchange in the first two months).

Belarusian gold and FX reserves shrank 20% in January-February.