Belarusians Guzzle Away Foreign Currency, Barys Zhaliba Says

A stable situation with the Belarusian ruble exchange rate much depends on the fact that the population guzzles away its savings.

The National Bank of Belarus predicts a decline of the ruble against the currency basket by 5-7% in 2017. Is it possible to implement these plans?

- The ruble exchange rate is determined by many factors. Including external ones. For the fourth year already Belarus has suffered a decline in currency income and, according to analysts, the stable national currency rate is strongly related to guzzling away of currency savings by the population; meanwhile, the banking system is decreasing currency deposits. This currency goes to the market and balances the situation, but savings are not infinite, and the oil price has slightly risen to make a significant difference in foreign exchange earnings. Prices for potash do not increase as well. Therefore, the National Bank offers a very optimistic forecast. It would be nice if the ruble remained at current levels next year, economist Barys Zhaliba said in an interview to Radio Racyja.

- But now the ruble is getting stronger against dollar and euro...

- As I said, the population makes a contribution, since the beginning of the year the net sales of foreign currency by individuals has amounted to about half a billion dollars. This is a fairly large sum. As for oil prices, the further scenario is unknown. Now countries of the OPEC are trying to reduce oil production, and the price of oil may grow a little. It will also contribute to the strengthening of the Belarusian ruble.