17 June 2021, Thursday, 20:45
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Belarusians Withdrew $3.5 Billion From Foreign Currency Deposits

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Belarusians Withdrew $3.5 Billion From Foreign Currency Deposits

The continuous outflow of money has been going on for 16 months.

The population has continued to withdraw foreign currency from banks. Corporate and personal deposits are part of the total money supply of the country. Officials provide information in two categories - as of the 1st of the month and the average for the period, reports banki24.by.

Statistics on the 1st day is often affected by the calendar factor, especially when weekends fall on those dates. Therefore, we will use the information for the month of May 2021.

According to the results of May, the broad money supply grew by only 0.3% by 2020. The money supply consists of two components - the ruble and the currency ones. The ruble component increased by only 2.5% in May 2020. The foreign currency component of the money supply is mainly represented by deposits in foreign currencies. In terms of dollars, these deposits fell by 5.5% by 2020.

Thus, the low dynamics of money supply can be explained by the weak growth of the ruble part and the outflow of foreign currency deposits from the system. It is interesting that annual inflation in Belarus reached 9.4% in May, which is a record since January 2017 (then it was 9.5%). Today, high inflation in the country has little to do with any injection of money into the economy.

According to RB's methodology, deposits come in the form of transferable and other deposits. Transferable deposits include a variety of card accounts of individuals and current accounts of businesses. In everyday terms, this money is not a deposit.

Deposits in the eyes of the average Belarusian may include the following - the resources that are left in banks by individuals and companies for a certain period of time to receive interest income.

The devaluation of the Belarusian ruble in recent years has led to a low degree of confidence in the national currency among mass depositors. In May 2021, the average share of ruble deposits of individuals was 35.6%, while for other deposits - only 29.8%.

In May, the population kept in banks 3.304 billion BYN of transferable ruble deposits and 1.360 billion USD of transferable foreign currency deposits. Other deposits amounted to 4.628 billion BYN in rubles and 4.308 billion USD in foreign currency during the same reporting period.

The historical maximum of funds in foreign currency on other deposits was in October 2015. Since then, Belarusians have withdrawn USD 3.520 billion from banks.

According to statistics, the continuous outflow of money from other currency deposits has been going on for 16 months. During this time, citizens withdrew the equivalent of USD 1.902 billion out of the system.