Banks' stocks are melting at a record rate.
The citizens of Belarus are massively emptying their foreign currency accounts in banks. For example, in August, as we already wrote, Belarusians took $ 43 million from such accounts. This trend remains unchanged for a long time. If we count from the beginning of 2021, foreign currency deposits of individuals decreased by 13% or $ 764.8 million. What are the main reasons for this phenomenon and what future awaits the foreign exchange accumulation of the citizens of our country?
Experts from the financial company Alpari told the site myfin.by about this.
Obviously, in a normal economic situation, the bank deposit market works like this. First, people make money, and they have a certain surplus. Then they bring these surpluses to banks, hoping to overcome inflation in this way, and if they are lucky, then earn something from above. Banks, on the other hand, issue loans from the money received in this way, also earning money and ensuring the functioning of the entire economic system. A simple formula follows from this simple scheme - the more prosperous the population, the more money lies on deposits. And vice versa.
Thus, the first possible reason for the decrease in the amount on deposits is the usual lack of "extra" money. Or, in any case, it's little. Indirectly, this thesis is confirmed by the fact that the growth of fixed-term ruble deposits lags far behind the decrease in foreign currency deposits.
The second reason may be related to what is called institutional distrust. The fact is that the most profitable foreign currency deposits require that money should not be withdrawn from them for 2-3 years. To make such a deal, you need to firmly believe that, after this time, you will be able to return this money without any problems. Such optimism is not characteristic of every Belarusian today. Obviously, the two named reasons are rather negative in nature, emerging from mistrust and poverty. The more interesting the third possible reason becomes.
Let's go back to the very beginning. Why does a person invest his money? After all, it is obvious that a bank deposit is one of the most popular investment methods. He wants this money to bring him income. And why does he bring them to the bank? Because any investor, even without knowing it professionally, evaluates his investments by comparing two main indicators: profitability and risk level. In a classic situation, bank deposits bring a very small but stable income, being an almost risk-free asset with an accounting of guaranteed deposit reimbursement by the state. In the current situation, especially in the perception of citizens, deposits are losing their main property - security. When you don't know what will happen in a couple of years, it's hard to trust someone.