Railroaded By Hyperinflation, Belarus Is Now Running Out Of Meat…(HMMMM…Could That Happen Anywhere Else??…Nahhh)
Aug. 31, 2011
Belarus’ hyperinflation is out of control. The country has the world’s highest lending rate and has devalued its currency. Now it is running out of meat, according to Bloomberg.
Belarus has imposed price restrictions on essentials like bread and dairy. And has banned individuals from taking basic consumer goods out of the country.
But it has been reported that buyers from Russia have purchased meat at reduced prices, crossed the border now that border checkpoints have been removed, and are selling the meat at higher prices, as locals struggle to purchase necessities with the weakened Belarusian ruble.
The currency crisis
Belarus which devalued its currency by 36% in May, is considering another forced devaluation of up to 15% to lower its exchange rate and stem a balance-of-payments crisis. The ruble whose official central-bank rate is 5,107 per dollar, is going as low as 9,000 on the streets, according to Bloomberg.
With gold and foreign exchange reserves falling 22% to $4.2 billion in the year to August, locals queue outside licensed exchange booths to get foreign currency.