A new version of the Law of the Republic of Belarus "On Currency Regulation and Currency Control" and regulatory legal acts of the National Bank have entered into force in the country, providing legal entities and individuals with the right to perform currency exchange operations at the Belarusian Currency and Stock Exchange without the mediation of banks. Since August 25, the BCSE has provided an opportunity to make foreign currency purchase and sale transactions in its trading system in a continuous double auction trading mode.
Perhaps each of us has faced a situation when it is necessary to sell or buy a currency at a favorable rate. If we are talking about a small amount, then, as a rule, nearby exchange offices are considered. But what to do when you need to change a few thousand dollars or more? As a rule, it takes more than one hour to find the optimal option. And no one will guarantee that the amount you need will be available at the banking institution where you contact. And in any case, the bank earns money on buying and selling currency, since the rates differ from the official one set by the National Bank following the results of trading on the Belarusian Currency and Stock Exchange. This difference is precisely the profit of banks. From the end of August, individuals and legal entities have the opportunity to purchase and sell currency bypassing banks.
This opportunity was provided by the Belarusian Currency and Stock Exchange. Now it is possible to participate in the exchange trades in three main traded currencies — the US dollar, euro and Russian ruble - and make transactions at a favorable market rate due to the margin absence, which is counted in the rates when buying or selling currency through banks. Individuals and legal entities received a direct access to real-time trading. But one wish is not enough, remarks the BCSE Chairman of the Board Andrei Aukhimenia:
— In order to trade on the stock exchange, you need to go through several simple steps. First of all, to get admission to trades. This procedure includes client identification and registration. To do this, you need to provide a package of documents, the list of which can be found on the BCSE's website. You can fill them in at home by yourself, with the consulting support of our employees, and
bring them to the BCSE only for submission, or come with a passport to prepare documents by BCSE employees. In the first case, the registration procedure will take less time. Based on the results of the analysis of documents, the client can obtain the participants status. Then the corresponding software - a trading system, as well as an electronic document management system are installed on the computer.
To participate in trading, the client pays exchange fees in advance at the beginning of the month in the amount of BYN 360. The unspent part of this amount over the past month is transferred upon the request to pay for the next month of trading or returned to the client's bank account.
— After installing the software and transferring the advance payment for exchange and clearing fees, electronic document management services, an individual gets the opportunity to directly participate in trading, - says the BCSE Chairman of the Board.
When submitting the documents, it is mandatory to indicate the numbers of bank accounts to which, according to the results of trading, the BCSE will transfer foreign currency or Belarusian rubles. In addition, trading accounts are opened on the exchange for individuals.
- An individual transfers the necessary amount from his bank account to buy or sell currency before the trading starts - continues the BCSE Chairman of the Board. - For example, to sell a thousand dollars, you need to transfer this amount from a bank account to a trading account on the BCSE. Our system sees that the amount is transferred and automatically allows the client to submit an order, the amount of which may not exceed the transferred amount. If, for example, a person transfers one thousand dollars and tries to apply for the sale of two thousand, the trading system will not accept it and will not allow it to be traded. This allows you to minimize possible risks during trading and subsequent settlements. This is how the system of one hundred percent pre-deposit works.
Simply stated, pre-deposit or reservation is a kind of insurance against non-fulfillment of obligations by counterparties. This eliminates the possibility of the appearance of overdue debts of the client.
- Using these approaches at this stage there is practically no risk of possible non-fulfillment of obligations by individuals. I repeat, one of the main factors of such security is one hundred percent reservation by both sellers and buyers of currency, - says Andrei Aukhimenia.
As for the technical part, now the BCSE trading system is running on the Windows platform. And it is available for use on regular desktop computers or laptops. In the future, BCSE specialists plan to develop a web application for use on any devices, including smartphones and tablets.
- For the moment, individuals are only interested in a new service of the exchange, they clarify the nuances of the work. Probably, the first real customers will come to BCSE after a series of training events for them. We are planning to organize such a thematic seminar in the near future. And after that, the first deals should appear— Andrei Aukhimenia clarifies.
The benefits of this exchange service are obvious. Firstly, the client saves significantly on the difference between the exchange rates offered by banks and the market prices that are formed during the exchange trading. Andrei Aukhimenia draws attention to the fact that all transactions are concluded on market conditions:
— Anyone who has ever bought or sold foreign currency has noticed that in the exchange offices of banks there is always a difference (spread) between the rates of purchase and sale of currency, which can sometimes be quite significant. All banks take part in the exchange trading at the same time. This creates competition that results in the establishment of a minimum difference between the purchase and sale rates, sometimes ten times lower than the one in exchange offices. As a result, due to the narrowing of the spread, an individual can get a more favorable exchange rate.
Another indisputable advantage is the ability to independently decide at what time and at what rate to make a deal. On the stock exchange, trading takes place in real time, and by observing the dynamics of the foreign exchange market, you can profitably sell or buy currency. In addition, there is no risk of non-delivery of currency. A big role, of course, is played by the financial literacy of the player himself.
- BCSE does not advise on making investment decisions, which currency, when, in what volume and at what rate it is better to buy or sell. In addition to obtaining basic knowledge, traders-beginners can track how other participants trade, what spreads banks set, what rates are formed on the BCSE. Trading is a multi-factor system that can change in a second. But a lot depends on the person himself, and sometimes from a chance. For example, you can apply for the purchase of currency at a fair rate for yourself, and at the same time, this rate may differ from the market one. And such a kind of non-market bid can also work, and an individual may receive an unplanned profit. It is necessary to analyze information, understand trends and make the right conclusions, and then the trading on the exchange currency market will bring out only positive emotions—specifies Andrei Aukhimenia.