AFP/Minsk

An official of Belarusian National Bank presents a new 200,000-ruble note in the bank headquarters in Minsk. Belarus, gripped by rampant inflation, issued the note yesterday to help consumers with their purchases, though it is worth less than $25 (20 euros
Belarus, gripped by rampant inflation, has issued a 200,000-ruble note to help consumers with their purchases, though it is worth less than $25 (20 euros).
The eastern European state last year battled a severe economic crisis, with an annual inflation rate of 108% and the central bank raising interest rates to 45% at one point.
“The new banknote will solve the challenges we are facing,” said the deputy head of the Belarusian national bank Vladimir Senko. “Events took place which demanded a new banknote.”
The 200,000-ruble note is worth a mere $24.40. Previously, the highest denomination note was 100,000 rubles. A 500,000-ruble note may be next, Senko said.
The inflation crisis eased slightly at the start of this year, but month-on-month inflation rates were still high at 1.9% in January and 1.5% in February. Interest rates now stand at 38%.
Economists blame the crisis on the collapse of the economic system of authoritarian President Alexander Lukashenko characterised by tight state control and big subsidies that created a massive current accounts deficit.
But Lukashenko is now being helped out of the crisis by billions of dollars in financial aid and cheap energy from Russia, which seems happy to turn a blind eye to rights abuses that have angered the EU.