of October 31, 2019 No. 402
About approval of the Main directions of monetary policy of the Republic of Belarus for 2020
1. Approve the Main directions of monetary policy of the Republic of Belarus for 2020 (are applied).
2. To provide to National Bank together with Council of Ministers of the Republic of Belarus accomplishment of the Main directions of monetary policy of the Republic of Belarus for 2020.
President of the Republic of Belarus
Approved by the Presidential decree of the Republic of Belarus of October 31, 2019 No. 402
1. In 2020 monetary policy will keep succession and will promote the sustainable and balanced development of economy of the Republic of Belarus by means of ensuring price and financial stability.
2. Main objective of monetary policy is delay of inflationary tendencies. Realization of monetary policy will continue in the mode of monetary targeting.
3. For preserving financial stability work on restriction of systemic risks, maintenance of level of gold and foreign exchange reserves, ensuring safe and effective functioning of banks, non-bank credit and financial and not credit financial credit institutions *, JSC Development Bank Republic of Belarus, and also payment system will be continued.
* Not credit financial credit institutions are understood as leasing, microfinancial and other not credit financial credit institutions which regulation of activities is assigned to National Bank according to the legislation.
4. The solution of task of ensuring price and financial stability will be promoted by diversification and strengthening of structure of the financial market, including development of its non-bank segment, economy devalyutization.
5. For the purpose of building confidence in National Bank its communication policy will be directed to increase in openness and transparency of the monetary policy pursued in the Republic of Belarus.
6. The monetary policy in 2020 will be directed to stabilization of the inflation measured by consumer price index at the level of no more than 5 percent (December, 2020 by December, 2019).
7. The surplus of average wide money supply will remain intermediate reference point. Taking into account need of ensuring price stability the surplus of average wide money supply is predicted at the level of 8-11 percent (December, 2020 by December, 2019). The balanced growth of the cash offer will be promoted by maintenance in real terms of interest rates in economy at the positive level.
As operational reference point of monetary policy the interest rate for daily interbank credits in national currency will remain.
8. Work on strengthening of the importance of the percentage channel of the transmission mechanism of monetary policy for the purpose of increase in efficiency of impact of the decisions made by National Bank on economic activity and inflation will be continued, including taking measures to devalyutization of economy and the measures stimulating subjects of the economic relations to work with financial instruments in Belarusian rubles.
9. The operations performed on auction basis according to the approved schedule in the public market which parameters will be set proceeding from need of achievement of operational reference point will remain the main instrument of regulation of current liquidity of bank system. Constantly available tools of National Bank will limit interest rate fluctuations on daily interbank credits.
The refunding rate, as well as earlier, will play key role in case of regulation of the cash offer in economy. It will remain limiting rate of cutting off when carrying out 7-day auction transactions of National Bank, and also the center of the corridor set by interest rates for constantly available transactions of regulation of liquidity.
At the same time gradual narrowing of corridor of interest rates for constantly available transactions of regulation of liquidity for the purpose of decrease in volatility of cost of resources in the interbank market is provided.
10. The National Bank will continue to pursue course policy in the mode of the floating rate. This mode provides use of currency interventions for smoothing of acute fluctuations of Belarusian ruble exchange rate.
For decrease in extent of participation of National Bank in the biddings in the domestic foreign exchange market expansion of borders of operational interval and neutral range, and also reducing daily limit of interventions of National Bank is planned.
The National Bank will perform operations on purchase of foreign currency for replenishment of gold and foreign exchange reserves in case of steady excess of its offer over demand in the domestic foreign exchange market.
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