BYN - Belarusian Ruble

History of the Belarusian Ruble

The Belarusian Ruble has undergone three key stages of development:

The First Belarusian Ruble (1992–2000)

Following the collapse of the Soviet Union, Belarus faced an economic crisis and cash shortages due to disruptions in supply chain. The National Bank of Belarus was unable to print Soviet currency, prompting the government to issue its own currency in 1992. 

The first currency issued was called the Belarusian Ruble (BYB), which replaced the Soviet Ruble at a rate of 1 BYB = 10 Soviet Rubles. This first Ruble officially became the national currency of Belarus after a two-year period of parallel circulation with the Soviet Ruble and the new Russian Ruble.

The Second Belarusian Ruble (2000–2016)

In 2000, the second Belarusian Ruble (BYR) was introduced, redenominating the currency at a rate of 1 BYR = 1,000 BYB, effectively removing three zeros. Only paper banknotes were issued, with coins minted solely for commemorative purposes.

During this period, Belarus explored the idea of adopting a unified currency with Russia. Although both countries signed a treaty in 1999 to implement a common currency, no agreement was finalized. In 2008, Belarus opted to peg its currency to the U.S. dollar instead of the Russian Ruble, a political decision driven by dissatisfaction with Russia’s increased oil and gas prices.

The Third Belarusian Ruble (2016–present)

In July 2016, the Belarusian Ruble (BYN) was issued at a rate of 1 BYN = 10,000 BYR. This marked the first time Belarus introduced coins for circulation, with denominations of 1, 2, 5, 10, 20, 50 kopecks, and 1, 2 BYN. The redenomination aimed to stabilize the economy and improve the monetary system.

Belarusian Ruble denominations

Currently, the BYN is issued in both banknotes and coins.

Belarusian Ruble banknotes

The Belarusian Ruble banknotes feature various designs that reflect Belarus's cultural heritage and historical significance. The Ruble (BYN) banknotes are issued in the following denominations:

• 5 Rubles (in blue and pink with image of wolves)

• 10 Rubles (in dark green with image of the Eurasian lynx with kitten)

• 20 Rubles (in orange with image of moose)

• 50 Rubles (in violet with image of brown bear)

• 100 Rubles (in green-brown with image of wisent)

• 200 Rubles (in yellow-green with image of the train station square)

• 500 Rubles (in violet-red with the image of National Academy of sciences of Belarus)

Belarusian Ruble coins

The Belarusian Ruble (BYN) coins are issued in the following denominations:

• 1 kopeck (copper-plated steel)

• 2 kopecks (copper-plated steel)

• 5 kopecks (copper-plated steel)

• 10 kopecks (brass-plated steel)

• 20 kopecks (brass-plated steel)

• 50 kopecks (brass-plated steel)

• 1 Ruble (nickel-plated steel)

• 2 Rubles (nickel-plated steel)

Exchange Rate of the Belarusian Ruble (BYN)

• On January 2, 2009, the National Bank of Belarus devalued the Ruble by 50%.

• On May 25, 2011, the Ruble's value dropped by another 56%, prompting experts to warn of a potential crisis similar to the one in 1991.

• On October 20, 2011, the Ruble further depreciated by 42% as the government fully floated the currency, complying with demands from Russia and the IMF.

• In January 2015, Belarus devalued the Ruble by 23% in response to a currency crisis in Russia.

• In March 2022, the Belarusian Ruble hit a record low, losing 21.5% of its value due to the impact of Russia’s invasion of Ukraine.

• From July 15, 2022, to October 1, 2023, the exchange rate was fixed at 2.5 BYN/USD, followed by a shift to 3.27 BYN/USD.

Currently, the exchange rate of the Belarusian Ruble (BYN) against the US Dollar (USD) is approximately 1 BYN = 0.305 USD. This rate has remained stable recently, despite previous economic fluctuations.

Factors Influencing the Value of the Belarusian Ruble (BYN)

The value of the Belarusian Ruble is shaped by a complex interplay of domestic and international factors that influence its stability and purchasing power.

• Economic conditions: The overall health of Belarus' economy plays a fundamental role in determining the value of the Ruble. Factors such as GDP growth, inflation rates, and employment levels directly impact consumer confidence and investment.

• Monetary policy: The National Bank of Belarus controls monetary policy, including setting interest rates and regulating money supply.

• Energy supply: Belarus relies heavily on subsidized energy imports from Russia, particularly oil and natural gas. These favorable terms support economic stability. However, any changes in these agreements, like price hikes or supply disruptions, can harm the economy and lead to a decline in the Ruble's value.

• Political situation and international relations: Belarus’ close ties with Russia and Western sanctions often weaken the Ruble by reducing foreign investment. Political instability or strained relations also trigger capital flight, lowering confidence in the economy and causing the Ruble's value to drop.

• Global market fluctuations: Global events, especially the conflict in Ukraine, have caused regional instability and weakened the Ruble due to sanctions, trade disruptions, and economic uncertainty. Fluctuations in global markets, like oil prices or economic slowdowns, also impact the currency's value.

The value of the Belarusian Ruble is influenced by several factors, including economic conditions, banking policies, international relations, and energy supply. Monitoring these elements is crucial to understanding future fluctuations in the BYN exchange rate.