Belarusians are waiting for a new devaluation: the demand for currency is increasing

A rush demand for currency appeared in Belarus again.

According to official data of the country’s national bank, In June the population, comparing to May, bought currency on 17.4 million dollars more, than sold. This has not happened since May 2011.

“Is it connected only with the holiday season, when people traditionally buys the currency to rest abroad?”, - asked “Radio Freedom” the experts.

Boris Zheliba, Doctor of Economic Sciences, professor, notes that the mass of the ruble started to increase fast. In May its growth amounted to 5%, in June – to 14%.

“And people are educated now. They surf the Internet and read mass media. And they see that the increase of the money stock becomes more rapid. Because of this people have so-called inflation expectations regarding the ruble. This explains motives of converting money into foreign currency.

Besides, Lukashenko said that the rate of the first category will be increased from August. People understand what will happen next, and make reserves of foreign currency already now. That is why the rush demand for it is not only a consequence of the holiday period, but also of the inflation expectations”.

Eugene Preygerman, research director at the liberal club:

“Two factors are acting here. The first one – people need currency for vacations. The second one – the refinancing rate is decreasing. That is why people start to convert ruble deposits into currency. And then, of course, the will save it in their homes or transfer it as currency deposits.

And this tendency is being observed somewhere from May. Exactly that time the three-month contracts on ruble deposits, which were signed between population and the banks, have started to end”.