Cash reserves in Belarus are dwindling, yet physical currency is on the rise
In a recent release, the National Bank of Belarus has announced a decrease in the broad money supply and foreign currency deposits in the country as of August 1.
The broad money supply, a notional measure used to gauge the level of an economy's money supply, decreased to 56.14 billion rubles in July. This follows a 2.5% increase in May and a 3.8% increase in June. The indicator is provided by the National Bank of Belarus.
The broad money supply in Belarus is composed of cash in circulation, non-cash money in demand deposits and settlement accounts, time deposits, investments in precious metals or stones, and the value of securities (excluding shares).
The total amount of foreign currency deposits in Belarus was $11.49 billion at the beginning of August, a decrease of $138.5 million (-1.2%) from the previous month. This decrease was reflected in both deposits of legal entities, which dropped by $123.6 million to $6.59 billion, and deposits of individuals, which decreased by $14.9 million to $4.89 billion.
Interestingly, the volume of cash in circulation increased by 435 million rubles to 13.64 billion rubles in July, while the money aggregate decreased to 30.88 billion rubles. This suggests a shift in the composition of the money supply, with a decrease in non-cash components offsetting the increase in cash in circulation.
It is worth noting that as of now, there are no direct or specific search results available with statistics or data about a decrease in broad money supply and foreign currency deposits in Belarus for August 2021. The available results do not cover Belarus or the relevant time period directly.
To obtain the precise data, one could check the National Bank of the Republic of Belarus' official monthly monetary reports or statistics for August 2021. Additionally, accessing Belstat's official statistical bulletins or archives for monetary statistics in 2021, or reviewing IMF or World Bank reports on Belarus for 2021 for monetary trends, may provide further insights.
Reported by Mikhail Svetlov.
The decrease in the broad money supply, which includes cash in circulation, non-cash money in demand deposits and settlement accounts, time deposits, investments in precious metals or stones, and the value of securities (excluding shares), may continue to affect the industry, finance, and banking-and-insurance sectors in Belarus. The total amount of foreign currency deposits, a significant component of the financial sector, also decreased, causing changes within these sectors.
