The Soviet Union ceased to exist in 1991. The great country fell apart, giving birth to new independent countries. And if earlier, as part of the Union, all the republics used the Soviet ruble for settlements, then sovereignty demanded the creation of both their own Central Bank and the issuance of their own currency.
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The time of the formation of the country inevitably led to the depreciation of the national currency, and sometimes to denomination. The exchange rate of the national currency is usually compared with the US dollar. Let’s analyze how much the ratio of currencies has changed over the past 30 years and what the dollar exchange rate could have been in some countries of the former USSR, if not for monetary reforms and related denominations.
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How much the Belarusian ruble has depreciated
In attempts to gain sovereignty, Belarus did not sit idly by. Already on December 21, 1990, the Supreme Council of the Republic adopted a resolution according to which all branches of Soviet banks, as well as allied enterprises and organizations located on the territory of Belarus, began to be considered the property of the new independent state. And by April 1, 1991, the formation of the National Bank was completed.
That’s just their own currency, the Belarusian ruble, in the form of settlement tickets, appeared in mid-1992. And in parallel with them, the Soviet ruble, issued before 1992, remained a means of payment. The ratio of currencies was 10 Union rubles to 1 Belarusian. But only a year later, the national currency became the only legal means of payment – since July 1993, Soviet rubles began to be withdrawn from circulation.
The currency of the young country had to go through two denominations. First at a rate of 1,000 to 1 in early 2000, and then 10,000 to 1 in mid-2016. Thus, over the period of its life, the Belarusian ruble dropped 8 zeros. Currently, the US dollar is worth about 2.6 Belarusian rubles. If we take into account the denominations, now one dollar would cost almost 260 million rubles in Belarus.
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How much the Kazakh tenge has depreciated
In the middle of 1991 Kazakhstan also had its own National State Bank. Its basis was also the republican branch of the Soviet State Bank. In 1993, the young financial organization became known as the National Bank of the Republic of Kazakhstan. On November 15 of the same year, the country also had its own national currency – the tenge.
Soviet rubles were exchanged for new money at a ratio of 500 to 1. And the tenge itself has never been denominated since then. But, like any currency of a country whose revenues depend on the sale of oil and gas, the weakening of their prices also affected the tenge exchange rate. Currently, the dollar is worth about 420 tenge. Taking into account the accepted ratio (500:1), at present the dollar would cost 210 thousand tenge in the exchange of currencies.
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How much the Russian ruble has depreciated
In 1990, the financial system of a country that had not yet emerged began to take shape. According to the decree of Boris Yeltsin, the Russian republican office of the State Bank of the USSR was transformed into the State Bank of the RSFSR.
And the Russian ruble, as the monetary unit of a sovereign country, appeared in December 1991. The new currency was in circulation along with the old one. Soviet rubles were used until 1993, but all coins issued in 1961-1991 and coins of 1, 2 and 3 kopecks issued before 1961 remained legal money until the very end of 1998.
And the ruble survived the denomination only once – in 1998. Three zeros were dropped. Now the dollar is worth about 77.5 rubles, and taking into account the past changes, it could cost 77,500 rubles.
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How depreciated the Ukrainian hryvnia
And in this case, the National Bank of the country owes its appearance to the republican branch of the State Bank of the USSR. The transformation happened in the spring of 1991. At the beginning of 1992, temporary money appeared in circulation in Ukraine – coupons, which were denominated in rubles or karbovanets. But over the next 5 years, inflation greatly depreciated this currency.
Only in 1996 a full-fledged national currency appeared in the country. The exchange for it took place in the ratio of 100 thousand coupons for 1 hryvnia. At present, the dollar is worth 28.5 hryvnias, taking into account the past actual denomination, the dollar would cost 2,850,000 karbovanets-rubles.
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What is the result?
If there were no denominations and monetary reforms that dropped zeros from the national currency, then the dollar would now cost so much in the countries of the former CIS:
|4.||Ukraine||2 850 000|
It is Belarus that has depreciated its currency more than other republics in the 30 countries that have passed since the collapse of the USSR. The devaluation affected the Baltic countries least of all.
It is worth noting that by 1996, when the hryvnia was introduced in Ukraine, the dollar there grew exactly the same as in Belarus – up to 176,000. The ratio of 10 to 1 for the first settlement notes of the National Bank of Belarus should also be taken into account. But over the next 25 years, power in this country remained stable, while Ukraine was in a fever – revolutions, armed conflict, loss of territories. As a result, since 1996, the dollar in Belarus has grown in value by 1,466 times, while in Ukraine – only 16 times. In Russia, during this time, the dollar has grown in value by 14 times.
And in 2020, the Belarusian ruble generally became an outsider among the currencies of the CIS and European countries – the dollar exchange rate grew by an impressive 22% over the year.