The Belarus economy is tumbling down. Though, President Lukashenka is denying the crises: Since January 2011, in order to deal with the financial meltdown the government has devaluated the national currency by 56% against the US dollar. As a result of this the prices in the stores are rising, and the Belarusians are suffering.
“Crisis in Belarus?! You know, a crisis is when enterprises are closed down because there is no demand for their goods, when it is impossible to sell products and people are forced into the streets,” said Aliaksandr Lukashenka during a recent press-conference at the National Library in Minsk denying any economic problems in the country.
Belarus has been struggling for some months to pull out of the foreign currency crisis, which is mostly fuelled by President Lukashenka’s populist economic policies. The result is a massive devaluation of the Belarus roubel against the dollar. The country has lost more than a quarter of its foreign currency reserves compared to before the devaluation in May. On June 1, reserves stood at $3.6 billion, down from $5.0 billion on January 1. (more…)