Why Euro Is To Grow In Belarus In Near Future

Yesterday's record at the auctions in Minsk may not be the last.

Following the auction at the Belarusian Currency and Stock Exchange on June 28, the euro was 2.1987 BYN / EUR, having added 4.48 kopecks (or slightly more than 2%). The dollar increased by 0.94 kopecks or 0.45%, stopping at 1.9343 BYN / USD. The exchange rate of the Russian ruble fell by 1.86 kopecks and was fixed at 3.2485 BYN / 100 RUB, Belrynak writes.

According to Zhanna Kulakova, a TeleTrade financial consultant, the trend towards the growth of the dollar and euro exchange rates and the depreciation of the Russian ruble is again explained by the dynamics of the Russian currency market. The Russian ruble began to weaken again. And the fact that this happens against the background of growing oil confirms that now the key factor for the Russian ruble is the demand of foreign investors for Russian assets, in particular, for federal loan bonds. Apparently, the outflow of foreign capital has resumed, because the ruble is weakening. The expert notes that these fluctuations are speculative ones.

As for the sharp rise of the euro, according to the financial adviser, it is conditioned by the dynamics of the European currency in the international currency market. Changes between the ratio of the dollar and the euro in the world arena always affect the Belarusian market. Today, the euro rose sharply against most of the world's currencies after ECB President Mario Draghi hinted that he could soon start to eliminate the program of quantitative easing of the economy. For several years, the ECB has been issuing large-scale emissions in order to disperse inflation and make the economy grow.

At the same time, the main interest rate of the European regulator is zero, and the deposit rate is negative at all. These factors have led to the fact that the euro fell to the dollar by almost a third over the past few years. However, their negative impact has already been exhausted, the ECB's objectives have actually been achieved, and for several months already it has been announced on the sidelines that the issue will soon be stopped and the rates will start to increase.

According to Zhanna Kulakova, such a scenario is quite possible, and in the next year and a half we will see a fairly long period of the European currency’s growth. In fact, it has already started this year: since January, the euro has risen to the dollar by about 9%. By the way, not only the euro is growing, but the dollar is falling amid political uncertainty and a number of economic factors, the financial expert of the company TeletradeBel noted.