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Earnings potential in Belarus: financial remuneration details

Exploring investment opportunities, foreign currency deposits stand out as a versatile choice. Simultaneously tackling inflation mitigation and profit gain, these deposits notably offer security as well, with the Belarusian government ensuring the repayment of funds. Myfin.by delved into the...

Exploring Foreign Currency Deposits as a Versatile Investment: Offering Protection Against...
Exploring Foreign Currency Deposits as a Versatile Investment: Offering Protection Against Inflation and Profit Generation. Moreover, the Belarusian government guarantees the return of funds from these deposits. myfin.by evaluates and compares the foreign currency deposit options currently available from Belarusian banks, along with their profitability.

Earnings potential in Belarus: financial remuneration details

Foreign Currency Deposits in Belarus: A Guide for Investors

Foreign currency deposits serve as an investment option, providing a means to combat inflation and generate profits. In Belarus, where returns from such deposits are guaranteed by the state, Myfin.by explores the foreign currency options offered by local banks.

Choosing the Right Currency

Physical persons in Belarus can open deposits in various currencies, including the Belarusian ruble, euros, US dollars, Russian rubles, and Chinese yuan. The latter three are part of the national currency basket due to their prevalence in Belarus' external trade. For investors, these currencies hold a higher potential, given their significance in trade settlements.

However, when selecting an investment currency, factors beyond the currency's prominence should be considered:

  • Bank deposit conditions in Belarus
  • The country's inflation rate, which issuer of the chosen currency represents

Russian Ruble

Belarusian banks offer callable and non-callable deposits in Russian rubles with terms ranging from 35 to 1733 days. Interest rates vary depending on factors such as deposit type, capitalization, and contract duration. The maximum interest rate of up to 17.2% per annum is provided by Belagroprombank, followed closely by Bank VTB (Belarus) at 17% and Sberbank at 15.75%.

Inflation in Russia was 10.23% as of April 2025. If this rate remains steady throughout the year, deposit holders can still anticipate a real profit, after accounting for inflation, of around 6.97% per annum.

US Dollar

The US dollar offers deposit terms between 1 and 1825 days. Interest rates range from 0.001 to 1.14%, with capitalization typically available for most deposits. The most favorable offers come from Neo Asia Bank (up to 1.4% per annum), Bank RRB (up to 1.35%), and Belagroprombank (up to 1.3%).

In April 2025, the US inflation rate stood at 2.3% per annum—the lowest since 2021. Regardless, even considering this rate, Belarusian USD deposit owners will still experience a decline in their savings due to inflation, as they would lose at least 0.9% annually.

Chinese Yuan

The Chinese yuan became a deposit option in Belarus in 2022, with terms ranging from 35 to 1099 days offered by eight local banks. Belgazprombank, Bank BelVEB, Bank VTB (Belarus), and Sber Bank offer the highest interest rates, topping out at 4% per annum.

China is currently experiencing deflation, with consumer prices falling. April 2025's inflation rate was -0.1%, and the expected base annual inflation rate is 0.5%. Calculating the yield on yuan deposits using these figures reveals potential real profits of up to 3.9% per annum.

Euro

Deposits in euros can be made with terms spanning 1 to 1825 days. Interest rates are relatively low, ranging from 0.001 to 1% per annum. The best offers are available at StatusBank (up to 1% per annum), Belagroprombank (up to 0.9% per annum), and TechnoBank (up to 0.4% per annum).

Inflation in the eurozone was 2.2% as of April 2025, slightly higher than the European Central Bank's forecasts. High service and food product prices contribute to this rise, leading to real income diminishing at least 1.2% annually for euro deposit holders.

Additional Considerations

  1. Despite the modest interest rates on some currency deposits, it is still advisable to invest in euros, US dollars, Russian rubles, or yuan if you already possess these currencies.
  2. Deposits in yuan and Russian rubles may provide a genuine return on investment, taking inflation into account. While euro and USD deposits may help minimize inflation risks, as interest is typically accrued on the deposits.
  3. The most substantial benefits can be reaped through long-term deposits with capitalization and the option to add funds. These deposits often accrue interest at a higher effective rate and are exempt from income tax of 13% for terms exceeding 24 months.

Choosing the ideal currency for investment in Belarus requires taking into account the conditions offered by banks, the inflation rate of the issuing country, and the regulatory landscape. A well-rounded approach that considers these factors can lead to a more informed and potentially profitable decision.

  • Personal-finance considerations, such as bank deposit conditions and the countries' inflation rates, play crucial roles in selecting the right currency for foreign currency deposits in Belarus.
  • Deposits in yuan and Russian rubles could offer a genuine return on investment, accounting for inflation, while euro and USD deposits may help minimize inflation risks due to interest being accrued on the deposits.

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