Short-term deposits in foreign currency to be banned?

Belarusian banks will be forbidden to open short-term deposits in foreign currency for their clients.

A recommendation of the National Bank to stop opening foreign currency short-term deposits was sent today to all Belarusian commercial banks, charter97.org learnt from a source.

According to unconfirmed information, beginning October 17, clients can put money only on middle-term or long-term deposit accounts without the right to withdraw money at any moment. Another restriction affects loans both in Belarusian rubles and foreign currency – receiving a loan from November 1 will be practically impossible.

Charter97.org couldn't get confirmation of the information.

The reason for a possible restriction may be a disbalance in the accounts structure caused by devaluation expectations observed in the last months. Belarusians prefer to keep their savings on short-term deposits in foreign currency. As of October 1, more than 65.7% of deposits accounts were in foreign currency.

The restriction concerning credit activities and the ban on foreign currency short-term deposits fully agree with the plans of the National Bank and the government on structural reforms and increasing Belarus's competitive ability. According to paragraph 1.7, the authorities propose additional measures to optimise credit activities and create more attractive conditions for purchasing foreign currency government bonds. Paragraph 1.1 proposes to oblige banks to spread the practice of using banking products providing safety of accounts and encouraging people to keep money in the national currency.