Currency Savings of Belarusians Keep The Ruble Afloat

People continue to spend their savings.

Authorities maintain the ruble's stability due to currency savings of Belarusians.

Last week euro and dollar maintained their drop against the Belarusian ruble. On October 21 while trading session on the Belarusian Currency and Stock Exchange the dollar fell to 1.9048 ruble, euro - up to 2.0768 rubles. Why?

- The main reason is that the population all the time sells more currency than buys, senior analyst of Alpari Vadzim Iasub explained Zautra Tvaye Krainy.

According to him, companies sometimes buy more foreign currency than they sell.

- But even when legal entities perform as net buyers, the population sell even greater amount of foreign currency, the analyst states. - That is, in general, supply exceeds demand, and thus the exchange rate decreases.

Besides, the expert notes, dollar and euro drop was also promoted by the growth of the Russian ruble against these currencies.

- This period has lasted from this February, when oil reached its minimum and has begun to grow in price. It helps to remember that since the beginning of the year the Belarusian ruble has significantly dropped against the Russian one, Vadzim Iasub stresses.

He makes it possible that it may remain stable even when oil prices start to fall.

- We may face the situation when dollar and euro increase in price, while the Russian ruble drops. But the Belarusian ruble in terms of a currency basket will be stable or even continue its strengthening, the expert predicts.

According to him, the strengthening of the Belarusian ruble will make a profit for importers.

- Strong Belarusian ruble, in fact, assists everyone who receives a fixed income in the national currency. As well as to serve an external debt in dollars, the expert notes.

The analyst emphasizes the importance of the fact that the Belarusian ruble is getting stronger not artificially, but in the result of supply and demand.

- The Belarusian ruble exchange rate determined this way is the most suitable for the economy. Any deviation would provoke negative consequences, the expert says.

According to him, this is complex to determine when the situation changes on the Belarusian currency market.

- In conditions when Belarus has stopped to print money, income drops, it is not worthy to wait for drastic changes in domestic economy, Vadzim Iasub predicts.