Over the past days, there have been lines to currency exchange offices in Belarus, the value of the Belarusian ruble has fallen, and the IT sector is giving thought to relocating their offices and employees to other countries.
According to incumbent president Alyaksandr Lukashenka, Belarus spent huge money on combatting COVID-19, which has had its negative impact on the situation. Moreover, he could not help blaming peaceful protesters.
“Their rambling through streets [strikes and rallies] have also put pressure on the economic situation. Nobody is counting the money that is spent on them. The losses have already reached 500 mln BYN, and we still do not know what collateral losses will be,” state-run news agency BelTA quotes Lukashenka.
Belarusian media keep reporting about the increased demand for foreign currencies. Its consequent effect is the 5% rise in the euro and the dollar within the two post-election weeks. Independent experts have no doubt that the latest political developments are at the bottom of the downturn.
“The situation on the currency market will not change until there is political tension and people have something [money] to exchange,” Alpari Eurasia analyst Vadzim Iossub says.
The National Bank of Belarus has instructed other banks that they should provide sufficiency of foreign currencies in their branches.