Belarus issues new 200,000-ruble note worth less than $25

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.