Updated at 11:30,08-12-2016

Sergei Chaly: Belarusian authorities are trying to create an illusion of wealth

"We must understand, the situation has changed after the fx rate in Belarus became not fixed. In this situation, any increase of salaries, pensions and so on, by such administrative means, leads to no good", Sergei Chaly said in an interview to UDF.BY.


That's how the expert commented on Alexander Lukashenka's promise to significantly raise salaries and pensions from January 1.

"We will sequentially increase people's incomes, salaries and pensions. Already in early 2012 we will have to raise them", the president said, speaking at a seminar of senior officials of state bodies on December 15.

"As soon as paid money become not the earned incomes, they will automatically lead to a deterioration in the trade balance - demand for imports increases sharply, - Sergei Chaly told UDF.BY. - This means a change in the ratio of currency flows: payment of import and export earnings".

Accordingly, in his words, "the balance of demand and supply at the currency and stock exchange changes instantly, which leads to a change in the national currency rate".

"As a result, in a fairly short time - not more than two months - it would be: in nominal value salaries have increased, but in foreign currency terms, they remain the same. Due to the rate, which is not fixed, it is impossible to create an illusion of wealth", the expert thinks.