Exchange Currency Market

The Belarusian Currency and Stock Exchange (BCSE) is the only trading floor in our country carrying out trade with foreign currencies.

BCSE's main tasks on the currency market:

• organization and carrying out of exchange trades with foreign currencies;
  
• definition of a current market rate of Belarusian rouble to foreign currencies;
  
• estimation of traders’ requirements and obligations upon trading results;
  
• formation of documents stipulating carrying out of settlements upon trading results;
  
• control of trading participants’ and traders’ authority;
  
• information servicing of traders.

Market Organization

The exchange currency market is organized within the Currency Market Sector, which is uniting currency market participants. The Sector, which is not a legal entity, serves the purpose of promotion to the development of the exchange currency market as well as promotion of fair rules and effective standards of exchange trades. The Currency Market Sector activity is regulated by the Currency Market Sector Rules. The Supervisory Council forms the Sector Council to maintain an effective work of the Sector.

The National Bank and banks, which have a license of the National Bank on carrying out currency transactions, can be members of the Sector.

Trades and Settlements Order

The daily exchange trades with foreign currencies are carried out in the electronic trading system. Only banks that are Currency Market Sector members have the right to participate in exchange trades with foreign currencies. Other legal entities and individual businessmen carry out purchase and sale of foreign currencies through the trade participants. Trade participants can carry out transactions on their own behalf and at own expense, as well as on their own behalf by order of their client.

At the present time, the following financial instruments are admitted to trades at the BCSE:

USD/BYR; EUR/BYR; RUB/BYR; UAH/BYR; GBP/BYR; KZT/BYR; LVL/BYR; LTL/BYR; MDL/BYR; PLZ/BYR; TMM/BYR; UZS/BYR; CHF/BYR; EEK/BYR; JPY/BYR.

US dollar, Russian rouble and Euro dominate in the total amount of operations on the exchange currency market)

The exchange trades with foreign currencies are carried out in a “fixing” mode. Before the trades, trade participants forward bids on purchase and/or sale of a financial instrument. Depending on the difference between bulk volumes of purchase and sale bids, ether increase or decrease of currency lot rate is set. During fixing-mode trades the participants have the right to submit additional bids to change the amounts of purchase and sale of the financial instrument. Fixing rate is set at the moment when the bulk purchase volumes of bids match the bulk sale volumes. The satisfaction of bids is carried out under the established fixing rate.

An official rate of Belarusian rouble to US Dollar and Russian Rouble is established under the trade totals.

In order to satisfy the requirements of Belarusian legal entities and businessmen in foreign currency, as well as to maintain the stability of Belarusian rouble rate there is an obligatory sale of 30 % of currency earnings at the BCSE’s trading sessions.

Settlements

The settlements under requirements and obligations are carried out upon trades results.

The settlements under the concluded transactions are carried on the ground of exchange certificates:

• through the transit accounts in the National Bank (with USD/BYR, EUR/BYR, RUB/BYR, UAH/BYR);
  
• directly between trade participants (with other financial instruments).

Tariff policy

Exchange fees are levied from trade participants upon trades results. The exchange fee amount is indicated in exchange certificates:

• 0,015 % - for hard currency (dollar and euro) with settlements through the transit accounts of the National Bank;
  
• 0,012 % - for convertible currency (Russian rouble and Ukrainian hrivna) with settlements through the transit accounts of the National Bank;
  
• 0,005 % - for other financial instruments without usage of the accounts of the National Bank.