Outflow of foreign currency deposits of households replaced by inflow in the fourth quarter of 2021 – National Bank

January 31, BPN. In October-December 2021, Belarus’ monetary policy was aimed at “restraining the intensity of inflationary processes, taking into account the need to maintain financial stability and support the economy,” according to the National Bank’s report On the Dynamics and Factors of Change in Consumer Prices and Tariffs, the 4^th Quarter of 2021.

The document published on the National Bank’s website on 31 January notes that the foreign exchange market during the period in question “maintained a net supply of foreign currency from economic entities and households” due to “positive trends in foreign trade.” “As a result, the net supply of foreign currency formed in the 4^th quarter supported the stability of the exchange rate of the Belarusian ruble,” explained the National Bank.

On average, during October-December 2021, the Belarusian ruble strengthened against the US dollar by 1.1% and by 4.05% against the euro, weakening against the Russian ruble by 0.1%.

The stable situation on the foreign exchange market and attractive deposit terms “contributed to the recovery of savings in the economy.”

The average interest rate on new term bank deposits from individuals in the national currency was at 14.92% per annum in December (17.44% in September).

As a result, the inflow of ruble deposits from the population continued in the 4^th
quarter. On average, personal term ruble deposits increased by 6% in December compared to September.

In the same period, the outflow of foreign currency deposits of individuals was replaced by an inflow: “On average, in December, individuals’ term foreign currency deposits increased by 1.3% against September, versus a 5.4% decline in September against June.

The average interest rate on new loans (excluding soft loans) in Belarusian rubles in December was 13.5% per annum (13.3% in September 2021).