Growing Risks Of Policy Slippage

Beset by hyperinflation, Belarus remains in need of tighter domestic policy to help avert second-round inflationary pressures and a further sell-off in the currency. However, while the stepping up of financing support from Moscow has helped alleviate near-term balance of payments pressures, the potential for policy slippage on the part of the Belarusian government has concurrently risen.

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