Gold and foreign exchange reserves of Belarus fell in August by almost $ 1.4 billion, or 15.8%, the report of the National Bank of Belarus states. It was published on September 7 on the official website.
“According to preliminary data, as of September 1, 2020, international reserve assets of the Republic of Belarus amounted to $ 7.5 billion (in equivalent),” the National Bank said in a statement. “In August 2020, gold and foreign exchange reserves decreased by $ 1.399 billion (15.8%) after growing in July by $ 61.8 million (0.7%)”.
“The reason for such a sharp decline is the shock events in the foreign exchange market. The surge of violence from the authorities after the elections undermined the faith of Belarusians in the law and the state. The Belarusian ruble, as a part of statehood, also lost confidence, people went to banks and exchange offices to withdraw rubles and convert them into foreign currency. One of the reactions of the National Bank was to support the ruble through the sale of gold and foreign exchange reserves,” Katsyaryna Barnukova, a leading researcher at BEROC, explained to belsat.eu.
She notes that the prediction made before the elections will not be fulfilled. Belarus will not be able to receive new external financing in the volumes that were planned.
According to Barnukova, now it is difficult to predict even a month in advance.
“First of all, the reserves will depend on the development of the political situation. And then they will only depend on the reaction of people, external creditors, buyers of Belarusian exports to this situation,” the expert says.
The decline in gold and foreign exchange reserves is taking place against the background of growing devaluation expectations in society. Since August 27, it has been impossible to get a loan in Belarusian banks to buy housing in the secondary market.