What’s in the asset column?

Belarus’ gold and foreign exchange reserves hit an all-time high

The National Bank has recently published data on the country’s gold and foreign exchange reserves (GFER). According to regulator statistics, the GFER hit an all-time high, amounting to the equivalent of $10.942 billion as of May 1st. Over the past April, they increased by 8.7 percent, following a growth of 7.04 percent in March. The largest share in the structure of Belarus’ international reserves is held by assets in foreign currency and monetary gold. According to the National Bank, the volume of foreign currency in reserves as of May 1st this year amounted to $3.8203 billion, increasing by 15.5 percent in April, while the volume of monetary gold amounted to $5.719 billion, increasing by six percent. What influenced the growth, and what trends prevail in the Belarusian economy?

Belarus' National Bank          Aleksandr Kulevsky 

Growth factors

First and foremost, gold and foreign exchange reserves are highly liquid assets controlled by state bodies. According to the monetary policy targets, Belarus’ international reserve assets should amount to at least $7.1 billion by the end of 2025. Since the beginning of the year, the GFER have augmented by more than 22 percent. Analysts at the Eurasian Development Bank noted that the record level was primarily achieved by increasing foreign currency reserves against the backdrop of growing currency supply in the domestic market. The increase in the value of gold within the reserves also partially occurred due to its rising price. 
Another important factor is the gradual de-dollarisation of the Belarusian economy. The US dollar is no longer favoured in international settlements, nor by the population. Citizens are more likely to sell dollars than buy them.
“Today, most countries are moving away from settlements in dollars,” remarked Doctor of Economics Irina Novikova. “As for the EAEU countries, almost 90 percent of all settlements are already carried out between countries in national currencies. Accordingly, the dollar exchange rate is falling both here and in other countries. Those who had home savings in this currency have taken the money to the bank. Consequently, these funds, among other things, replenish our gold and foreign exchange reserves.”
According to data from the National Bank, in April, legal entities resident in Belarus were net sellers of foreign currency. At the end of the month, they sold $386.5 million more than they bought. As for individuals, in April they sold the equivalent of $188.9 million more currency than they bought. Candidate of Economic Sciences, analyst Georgy Grits, has pointed out that the course chosen by Belarus’ National Bank is bearing fruit, “The National Bank did not sell gold, and supported the real exchange rate of the Belarusian rouble, without raising refinancing rates. We have demonstrated how not to harm the real sector of the economy while simultaneously boosting the creditworthiness and improving the stability of monetary policy. The National Bank stimulated support for the real sector of the economy. This was a conceptual approach: to increase the resource base of commercial banks at the expense of the regulator. This lays a fairly high level of optimism for meeting the planned targets for the current year.” 

Positive trend

It is worth noting that the stability of the financial system and economic sovereignty are determined, in part, by the size of its gold and foreign currency reserves. This is evidence of a state’s solvency and its ability to influence processes within the national economy, as well as its capacity to regulate the exchange rate of the national currency, if necessary. The fact that Belarus’ GFER volume is at a record high today speaks to a stable economic situation. Despite external pressure, our country’s GDP is growing annually.
“Without a doubt, the situation in the Belarusian economy is good,” asserted Irina Novikova, Doctor of Economic Sciences. “Last year, we achieved four percent GDP growth. And for this year, we anticipate 4.1 percent. Many say that 0.1 percent is very little. But in reality, take 0.1 percent of $80 billion and you will see how much we are expected to grow. If we sell our products abroad and expand our markets, then naturally, foreign currency revenue increases. The more products we sell, the better it will be for our enterprises.”
Incidentally, Belarus’ GDP in the first quarter of this year grew by 3.1 percent, against a forecast of 2.7. The key drivers of growth were construction, manufacturing, the information and communication sector, and trade. The stable performance of the economy made it possible to ensure an average salary of over Br2,420 and an average old-age pension of more than Br890 in January–February 2025.
“Our population’s income is growing significantly,” emphasised Georgy Grits, a Candidate of Economic Sciences and analyst. “According to the latest data, the growth was 18 percent compared to the previous corresponding period. This is despite the fact that GDP grew by 3.1 percent. This creates a kind of imbalance. But again, I emphasise that this imbalance has not significantly affected macroeconomic indicators.”


By Vladislav Sychevich