Treasury Empties: Currency Gain Of Belarus Decreased By $ 3.5 Billion

This authorities have collected 15.6% less of foreign currency reserves this year.

According to the National Bank, foreign currency earnings of Belarus amounted to 18.9 billion dollars in January-August, which is $ 3.5 billion or 15.6% less if compared to the same period last year, BelaPAN reports.

This year’s decrease in foreign currency earnings of Belarus is associated largely with the decrease in the country's export earnings.

As the data of the National Bank indicates, the revenues from export of goods in January-August, 2016, have amounted to 14.75 billion dollars, which is 17.5% less if compared to the same period last year. Foreign currency earnings received from the export of services during the given period amounted to 3.69 billion dollars, which is 8.1% less if compared to January-August, 2016.

As the data on foreign trade has revealed, the main negative impact on the foreign currency earnings of Belarus was caused by a decline (in value terms) in export of Belarusian oil products, oil and potash fertilizers, which are marketed in Asia and Western Europe.

As a result, in January-August, the foreign currency earnings of Belarus received from the countries outside the CIS, amounted to 10.44 billion dollars, which is $ 3.1 billion less if compared to the same period last year.

It should be noted, that the export of goods and services and, as a result, foreign currency earnings of Belarus, has been declining during the last four years already. Thus, Belarus' export fall by 15.1% in 2013 if compared to 2012, by 1.7% in 2014, by 24.2% in 2015.

According to the Belarusian economists, the decline of exports and foreign currency earnings of Belarus is caused mainly by two reasons. First reason – a decrease in prices for petroleum products exported by Belarus on the global market and decrease in demand for potash fertilizers, which are also sold by the country on foreign markets.

“The second reason of the reduction of foreign currency earnings of Belarus has deeper roots and is associated with the fall of the competitiveness of Belarusian enterprises,” – believes the lead researcher of the Belarusian Economic Research and Outreach Center (BEROC) Katsiaryna Barnukova.

According to the expert, Russia's joining the World Trade Organization in 2012 has led to increased competition in the main markets where Belarusian products are sold, and it has become more difficult for the domestic exporters to sell their production.