Analysis of Exchange Rate Regimes and Their Influence on Macroeconomic Performance - Case Study

The choice of effective exchange rate regime is essential for further development of an economy, as it affects various macroeconomic and financial variables. On the example of the Republic of Belarus, the thesis analyzes the economic and political factors underlying the choice of exchange rate regimes, and effects of changes in exchange rate regimes on macroeconomic stabilization. Belarus is quite a new country, which faces early stages of its development. Currency restrictions have been one of the main constraints of foreign trade in the country and the main reasons for overall macroeconomic instability. The country has passed through different and challenging times and until now the principles of foreign exchange regulations are not systematically defined. Belarus needs to improve existing monetary system, including the main principles of the currency regulation, to ensure proper functioning of the economy.