The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
The Belarus authorities are moving in the direction of a flexible exchange rate system supported by an inflation-targeting (IT) regime, which would have significant benefits for the economy. A full-fledged IT framework (FFIT) requires a number of essential building blocks, which could be viewed as components of sound macroeconomic management. There are three additional features that could interfere with the IT regime. Some of the building blocks are essentially prerequisites for a successful launch of the IT regime; others could be developed (or fine-tuned) during early stages of IT implementation.