Tiraspol, 25 March. /Novosti Pridnestrovya/. The committee on economic policy, budget and finance as well as the presidium of the Supreme Council have considered today the PRB's proposal to amend the basic parameters of the monetary policy. In particular, the central bank's initiative provided for changing the currency corridor within 12.25−12.75 roubles per $1.
This proposal came due to changes in the parameters of a currency transaction account. According to the government, the current account balance is expected to be negative (-14%), The imbalance will be lower that it was forecast even several weeks ago, which is why in the initial project providing for the corridor of 14−16 roubles this indicator was adjusted. It was also announced that in the course of the PRB's currency trading the demand for currency exceeded $13 million, and the central bank managed to satisfy bank clients' bids at an amount of $1.5 million.
At the same time, according to the head of the PRB, Edward Kosovsky, in the event certain measures are taken, the government will be able to maintain inflation at the level of 5%. This is particularly possible by «freezing» tariffs for natural monopolies' services, extending a list of goods with government-controlled prices and working with the business community to prevent sharp prices hike.
«In this case the central bank will work without reserves, but we guarantee that we'll handle the situation," underscored Kosovsky, added that with the lack of understanding by lawmakers of the problem, we might find ourselves in the situation similar to that in 1998 when the US dollar's official exchange value was considerably lower than the market rate.
The central bank's head also noted that the bank had warned of possible risks three months ago, but it had been decided to keep it secret to avoid panic.
«The PRB warned about possible changes three months ago both at State Council and Security Council meetings, as well as at the praesidium's closed meeting. Several scenarios were proposed back then and one of them quite catastrophic — in case a power supply contract was not signed and in case the contract price changed. And the PRB made a deal with the president to let the matter rest before the contract was signed. It was done on purpose to avoid public anxiety," said the chair of the PRB.
Presenting the government's position, the first deputy prime minister, Alevtina Slinchenko recalled that it was said in response to the first proposal by the central bank that it was the most optimistic variant of maintaining the rouble's value. In the meantime, the government emphasised that without taking certain measures and changing the legislation in terms of currency control, that corridor was not possible to retain.
«These measures include mandatory sale of currency earnings, terms of repatriation, reduced amount of exported currency, prevention of speculative operations in the domestic currency market, lowering the threshold of the duty-free import of personal commodities, attraction of the population's currnecy deposits, extension of the supply of domestic goods, additional governmental control over prices and tariffs and so on," said Alevtina Slinchenko, adding that it is also necessary to authorise central bank to control the currency market as «its current powers do not allow the bank to maintain this corridor».
However, MPs opposed the changes submitted by the PRB. They particularly referred to some other calculations based on information provided by the SCC and business entities. According to the relevant committee, there are sufficient opportunities today to maintain the situation with auxiliary instruments.
According to the committee's chair, Alexander Martynov, these are tariff control measures, including the review of customs duties on a number of commodity items, and monetary regulation measures. Among the latter are increasing foreign exchange control standard, introducing the mandatory sale of currency earnings, resuming daily currency auctions, limiting dividend payments in foreign currency for non-resident organisations. Besides, the MP recalled an offer by one commercial bank to give a $10-million loan to the PRB.
«The loss of these receipts can be compensated for either investment or devaluation. Here instead of investment, we are offered the credit which is considerably lower than falling exports. We can equalise the situation in a day, but what next? It is understood that the problem is just postponed for several months," said Kosovsky.
At the same time, according to the central bank's chair, the problem of the rouble's exchange value is too politicised today.
«Today this issue is chiefly regarded from the political rather than economic point of view. Authorise the central bank to assume responsibility," he suggested.
However, these reasons failed to convince lawmakers: the relevant committee has put an end to this issue so far, having rejected the bank's proposal.
