Judging by early Q1 results, it seems that the local economy is emerging from the crisis — observed on the financial market last year. “The economy is already used to such figures and would find it uncomfortable to work under anything different,” notes the Chair of the National Bank, Nadezhda Yermakova. “We are seeing a stable situation at present, with sales of foreign currency prevailing over purchases.Over the past month, the National Bank has conducted mostly Rouble interventions on the Belarusian Currency and Stock Exchange. Since early 2012, we’ve bought around $1bn — all used for national gold and currency reserves,” Ms. Yermakova adds.
The active buying of foreign currency has led to a Rouble excess on Belarus’ monetary market, as the country’s major bank admits. However, the ‘excess’ Br10 trillion currently circulating will be gradually removed. “Sadly, crediting of the economy does not meet the pace we’d love to see,” states Ms. Yermakova. “We need to strive for banks being able to place more of their money via individual and business loans.”
According to Ms. Yermakova, existing rates are still inadequate to protect private savings from inflation and reduced rates have discouraged savers. Accessible loans for accommodation construction remain vital so Ms. Yermakova assures us that change is around the corner. In particular, credits for the military are to be re-considered.
