Is the United States devaluing dollar?

Roman Golovchenko, Chairman of the Board of the National Bank of Belarus, discussed the reasons behind the potential weakening of the dollar on the program "Actual Interview."

"I can state with certainty that we are not playing any games against the dollar. This situation is caused by a combination of factors. Firstly, there is the global dollar index, reflecting its valuation against a basket of international currencies. As of the latest data I have seen, it is at its lowest point in the past three years," said Roman Golovchenko.

Why is this happening?

"I do not exclude the possibility that this is a deliberate policy by U.S. authorities, because it is well known that a certain devaluation of the national currency makes goods more competitive on international markets. Perhaps this is an attempt to make American products more saleable and competitive. But that remains an assumption; there are also objective factors—namely, the colossal external debt of the United States, which has already reached 37 trillion dollars. Additionally, trade wars, protectionism, the imposition of tariffs, unilateral sanctions, and restrictions all contribute. Collectively, these measures undermine confidence in what was once considered the indestructible reserve currency of the world. Therefore, there is nothing surprising about this situation. Of course, things could change; much depends on the actions of American authorities and the global situation. But for now, this is the reality," emphasized the head of Belarus's National Bank.

How does the National Bank of Belarus stay attuned to global trends?

Roman Golovchenko shares insights from the St. Petersburg Economic Forum:

- Why will the digital ruble become the future of cross-border payments?

- How does the withdrawal from the dollar change global trade?

- Why are banks investing in artificial intelligence?

The exchange rate of the dollar in Belarus is influenced both by the global situation and domestic demand.

"We do not engage in targeted management of the exchange rate. We have a market-based pricing system, which is formed by supply and demand. The weak demand for American currency in Belarus also contributes to the currency's depreciation. I can tell you that since the beginning of the year, the dollar accounted for only 16% of trades on the Belarusian Currency and Stock Exchange. The yuan led with 22%, and the Russian ruble made up more than half. This is an open market. The figures clearly show that demand for the dollar is limited, which naturally impacts its exchange rate," emphasized Roman Golovchenko.