Belarus Needs To Maintain Tight Monetary Conditions To Improve Current Account Position, Preserve Reserves: IMF

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Belarus needs to maintain a tight monetary policy and contain its domestic demand in order to improve its current account balance and preserve reserves, the International Monetary Fund or IMF said in a report Thursday.

The lender said the global economic crisis exposed the country's vulnerability, with the current account registering a sizable deficit for most of the past decade, leading to extremely low international reserves.

However, the progress made in economic adjustments this year would help restore the country's external stability, the IMF noted. Moreover, Belarus' commitment to a balanced budget this year has been an important source of strength for the economic program, the lender said.

The IMF meanwhile pointed out the adverse effects of increasing the domestic demand. "Boosting domestic demand when the country's balance of payments remains fragile would risk undermining the objective of reducing external vulnerability through building international reserves, the lender added.

(Market News Provided by RTTNews)