Belarusians Massively Taking Out Euros, Dollars From Banks

The deposits have decreased by 62.9%.

Individuals' funds on foreign currency deposits (so-called other deposits) have decreased by 62.9% since the multi-year maximum, writes the banki24.by website.

The record funds of individuals on foreign currency deposits occurred as of September 1, 2015 - 7.844 billion USD in eq. Since then, the outflow of deposit resources amounted to 4.934 billion USD. As a result, as of March 1, 2024, individuals were keeping on foreign currency accounts USD 2.909 billion in eq. According to last year's estimate of the head of the Belarusian Union of Entrepreneurs, Aliaksandr Kalinin, previously the population used to hoard ≈7 billion USD in eq. (outside the system).

The outflow of foreign currency deposits from the system occurs against the background of historically low interest rates on savings instruments in dollars and euros. Thus, in January 2024, the average level of interest rates on new term bank deposits of individuals in dollar fell to 0.34% per annum. In February-2023, the average level of rates in this segment of the market was equal to 1.28%. The same is true for the euro: in February-2024, the level of rates on new fixed-term bank deposits of individuals fell to 0.22 per cent per annum (from 0.98 per cent a year earlier). For irrevocable deposits, the interest rate fell to 0.24%, and for revocable deposits - to 0.03%.

The annual yield of new deposits in dollars and euros offered by banks does not cover the inflation rate in the U.S. and euro zone. The real profitability of such instruments is negative: the decline in the purchasing power of the dollar and euro outpaces the growth rate of deposit capital in these currencies.