Monetary conditions grow milder in Belarus in Q3 - National Bank
<p> </p> <p> MINSK, Oct 30 - PrimePress. Monetary conditions in Belarus became more relaxed in the third quarter of 2020. The National Bank of Belarus (NBB) has posted a statement to this effect in a quarterly report, which analyzes the dynamics and factors of changes in consumer prices and tariffs in the third quarter of 2020. </p> <p> </p> <p> “Monetary conditions, which reflect the combined effect of interest rates and exchange rates on the economy, have generally become softer due to the increased undervaluation of the Belarusian ruble as a result of its nominal weakening,” the regulator said. </p> <p> </p> <p> The situation on the FX market and the deposit-and-credit market was influenced by internal adverse factors. “Against the background of growing devaluation expectations in the third quarter of 2020, private households and business entities created an increased demand for foreign currency. This led to the weakening of the Belarusian ruble and contributed to its undervaluation. On average, the Belarusian ruble fell by 2.8% against the US dollar, by 9.2% against the euro, and against the Russian ruble by 1.2% in the third quarter of 2020,” the National Bank said. </p> <p> </p> <p> In the deposit market, the outflow personal savings in Belarusian rubles and foreign exchange increased in the third quarter. The decrease in fixed-term ruble deposits of individuals on average in September 2020 amounted to 2.1% in year-on-year terms against a 14.7% increase in June 2020. Outflow of fixed-term foreign currency deposits of individuals averaged 20% year on year in September, compared to 8% in June 2020. </p> <p> </p> <p> “This has affected the structure of broad money supply. The share of the ruble component in September 2020 was 39.2% (42.3% in June 2020). The average level of broad money supply grew by 11.8% year on year in September 2020, mostly due to the exchange rate factor,” the regulator said. </p> <p> </p> <p> The NBB says, the credit market in the third quarter of 2020, against the background of increasing devaluation and inflationary expectations, was an increase in ruble lending to business entities. At the same time, there was a decline in lending rates in September. End </p> <p> </p>
2020-10-31
Primepress
Monetary conditions grow milder in Belarus in Q3 - National Bank
MINSK, Oct 30 - PrimePress. Monetary conditions in Belarus became more relaxed in the third quarter of 2020. The National Bank of Belarus (NBB) has posted a statement to this effect in a quarterly report, which analyzes the dynamics and factors of changes in consumer prices and tariffs in the third quarter of 2020.
“Monetary conditions, which reflect the combined effect of interest rates and exchange rates on the economy, have generally become softer due to the increased undervaluation of the Belarusian ruble as a result of its nominal weakening,” the regulator said.
The situation on the FX market and the deposit-and-credit market was influenced by internal adverse factors. “Against the background of growing devaluation expectations in the third quarter of 2020, private households and business entities created an increased demand for foreign currency. This led to the weakening of the Belarusian ruble and contributed to its undervaluation. On average, the Belarusian ruble fell by 2.8% against the US dollar, by 9.2% against the euro, and against the Russian ruble by 1.2% in the third quarter of 2020,” the National Bank said.
In the deposit market, the outflow personal savings in Belarusian rubles and foreign exchange increased in the third quarter. The decrease in fixed-term ruble deposits of individuals on average in September 2020 amounted to 2.1% in year-on-year terms against a 14.7% increase in June 2020. Outflow of fixed-term foreign currency deposits of individuals averaged 20% year on year in September, compared to 8% in June 2020.
“This has affected the structure of broad money supply. The share of the ruble component in September 2020 was 39.2% (42.3% in June 2020). The average level of broad money supply grew by 11.8% year on year in September 2020, mostly due to the exchange rate factor,” the regulator said.
The NBB says, the credit market in the third quarter of 2020, against the background of increasing devaluation and inflationary expectations, was an increase in ruble lending to business entities. At the same time, there was a decline in lending rates in September. End