Belarusians Have Few Dollars Left

And not only deposit dollars are over, but also the most untouchable ones – at home "stashes".

According to banking statistics, at the beginning of 2017, the term foreign currency deposits reduced by 9% in comparison with the last year, 6.99 billion dollars against 7.7 billion, BelaPAN notes. At the same time ruble deposits increased by 12%, taking into account the accrued interest, but did not grow in real terms.

According to the banking statistics, not only bank deposits decreased in 2016, but the money holdings, people keep in other places, including their homes. Last year, the Belarusians sold currency by $ 2.4 billion more than they bought.

The IMF predicts a further decline of savings until 2020 – according to these projections, Belarus is to become an outsider in terms of gross national savings in Central and Eastern Europe, although only recently it has been a regional leader.

"The trend of savings’ decline probably will continue. The real incomes fell again last year, and to maintain the consumption at the same level (such as a desire of the population can be traced), the savings are being used," – Belarusian Economic Research and Education Centre Dzmitry Kruk explains.

"However, if the population realizes fully that they should not count on the wage increase in the coming years, possibly, households will revise their behavior and reduce the consumption, which will stabilize the level of deposits," – Centre academic director Katsiaryna Barnukova adds. She believes that in 2017 the volume of foreign currency sales by the population may be lower than in 2016.

The reduction of population deposits can put into cold storage "the investment depression," Kruk believes. Previously, companies were not willing to be invested due to the economic downturn, and now the population can direct less money to the economy, which is a second factor. This may cause a second wave of recession.