Stanislau Bahdankevich: Don’t Keep Savings In Belarusian Rubles

Those who have big savings in Belarusian rubles should buy currency until it’s not too late.

This opinion was announced by former head of the National Bank of Belarus Stanislau Bahdankevich in his interview to Radio Racyja.

- I consider it to be a bit late to buy currency for those who have substantial savings in Belarusian rubles. Though, we can see that the national currency doesn’t become stronger. Some may spend rubles on things they need, because the cost of the goods is much lower in dollar equivalent, and prices on many items haven’t yet changed.

- Do savings in foreign currency continue to be attractive to people?

- As people don’t want to hide cash under the mattress they open deposits in foreign currency, although interest rates have fallen. Under conditions of inflation and devaluation and instability of national currency, it is profitable, anyways. This is why I would recommend making savings in foreign currency. Better – in US dollars, though part of your savings can be kept in Euros as well. People go on holidays to European countries. Why lose on conversion? I think that the difference in currency exchange rates of US dollars and Euros will remain the same. I believe Euro will remain to be a strong reserve currency.

- Shortly speaking, there’s no hope of Belarusian ruble…

- May be people would keep their money on ruble deposits, if the interest rate was high. The way it is now, there’s no trust in the national currency. On the other hand, our people don’t have money, as they get poorer every day.

It is to be reminded that on February 2 the Stock Exchange trade session in Minsk started with the substantial rise of US dollar and Euro. US Dollar exchange rate rose by Br554 and reached Br21 560, Euro exchange rate rose by Br651 to Br23 458.