MINSK, 28 January (BelTA) – The share of foreign currency deposits dropped almost by 10% in Belarus in the last three years, Deputy Chairman of the Board of the National Bank of the Republic of Belarus (NBRB) Sergei Kalechits told the SB. Belarus Segodnya newspaper on 28 January, BelTA has learned.
In late 2016, foreign currency deposits accounted for 70.9% of all bank deposits, while in early 2020 their share was 60.6%.
Starting from 2015, the NBRB monetary and public outreach policies have been aimed at restoring trust of economic entities in the national currency and in the NBRB as the institute that fulfills its commitments and takes responsibility for its decisions, Sergei Kalechits noted.
During this time, the NBRB has removed macroeconomic imbalances and maintained macroeconomic balance. “As a result we have eliminated domestic prerequisites for sharp devaluation of the Belarusian ruble and reduced devaluation expectations,” Sergei Kalechits stressed.
Moreover, the NBRB focuses on keeping inflation at low levels, which helps maintain the purchasing power of the national currency. “We made a transition to a floating exchange rate and took measures to offer more favorable terms for ruble deposits in comparison with foreign currency deposits. In order to restore the Belarusian ruble to its functions as a store of value and a unit of account, the NBRB has carried out a policy to reduce the use of foreign currencies in the country,” Sergei Kalechits said.
The open public outreach policy of the NBRB also played an important role. The NBRB Board started to review the refinancing rate and rates of instruments that regulate bank liquidity according to a set schedule. After every review, the board holds a media briefing to explain its decision. The NBRB also published more analytical information about the present state of the economy and the results of its research on its website.
“Such a comprehensive approach helped us successfully reduce the domination of foreign currencies in the economy,” Sergei Kalechits added.
