Companies receiving foreign currency, for example, in loans from parent companies or from sales are no longer required to exchange some of their foreign currency to Belarusian rubles. In 2016, 30 % of foreign currency had to be sold, in 2017 20 %, earlier this year 10 % and now the requirement is altogether abolished.
The mandatory sales were used by the Belarusian National Bank as a tool to gather foreign currency reserves, but they had the unfortunate side effect of functioning as a deterrent for foreign business in the country. Investors viewed it as a sign of administrative control and restriction on business.
The abolishment of the sale requirement is good news for export companies, and should in general improve Belarus's image as a place to do business on the world stage. The Belarusian economy and FX market is now stable and inflation is at 4 %.
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