The Official Currency of Belarus: Understanding the Belarusian Rouble and Its Current Status
In Belarus, the Belarusian rouble (BYN) serves as the official currency. However, its history and current status reflect a complex economic environment. This article aims to provide a comprehensive understanding of the Belarusian rouble, comparing it with other notable currencies in the region and discussing its current status.
A Brief History of the Belarusian Rouble
The Belarusian rouble is a currency that has its roots in the economic changes within Belarus following the breakup of the Soviet Union. It is officially named the 'Rouble' in Belarusian and its symbol is 'Br'. The currency code used for transactions and international transactions is BYN. Initially, the Belarusian rouble shared some naming conventions with the Russian rouble, but its value is significantly less than that of the Russian currency. This can be attributed to the different economic policies and conditions in Belarus compared to its neighboring countries.
A Closed Currency with Specific Restrictions
One of the distinguishing features of the Belarusian rouble is that it is a closed currency. This means that it is not allowed to be traded outside of Belarus. If you attempt to take the Belarusian rouble outside of the country, it essentially becomes worthless as it is not recognized elsewhere. Conversely, upon re-entering Belarus, the rouble retains its value. This unique regulation can be attributed to the country's diverse economic policies and the need to stabilize its own currency.
The Transition from BYR to BYN
As part of an economic reform, the Belarusian rouble underwent a significant transition. The former Belarusian currency, the Belarusian rouble (BYR), was significantly devalued, leading to a new currency, the New Belarusian rouble (BYN), with a much more stable value. This change came into effect after a currency denomination in July 2016, where the exchange rate was approximately 20,000 BYR for 1 USD. Following this transition, the exchange rate for the new currency remained at approximately 2 BYN for 1 USD.
Current Status and Exchange Rates
Currently, the US dollar (USD) remains a highly available and widely accepted currency in Belarus. Many Belarusians prefer to keep their savings in USD due to its stability. Most food stores and major commercial establishments in Belarus allow the use of the US dollar for transactions. Additionally, one can easily exchange USD for BYN or vice versa, making the US dollar a practical alternative to the rouble in daily transactions.
However, the Belarusian government has made several attempts to disrupt the free circulation of the US dollar. These attempts often involve trying to fix an artificial exchange rate, which has historically led to the formation of a black market or a semi-official shadow market. The black market typically operates at a rate that differs from the official one, providing a parallel market for currency exchange. This can be attributed to the government's attempt to control the flow and value of the national currency.
Conclusion
The Belarusian rouble, despite its unique status as a closed currency and its transition from the old BYR to the newer BYN, remains a significant player in the Belarusian economy. Understanding its current status, value, and limitations is crucial for travelers, businesses, and individuals interested in the economic landscape of Belarus.
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