Belarusians regained confidence in national currency deposits
According to the National Bank, in July 2014, despite lower deposit rates, fixed-term deposits in the national currency grew by BYR 197.5 bln – the largest increase since early 2014.
Rouble fixed-term deposits will still be more attractive than currency ones due to the National Bank’s predictable policy regarding the depreciation of the Belarusian ruble against the US Dollar. Banks’ currency deposits will increase only due to interest capitalisation. Individuals will continue selling their currency savings (net supply will persist). If the Government decides to issue foreign currency government bonds at 6.5-7% per annum, they might be in demand by the population.
According to Belstat, in August 7,600 people were dismissed, including 4,800 civil servants. Dismissals of civil servants were due to the optimisation in the public administration by up to 30%. Some civil servants would retain their job however would lose the status of a civil servant. Vacancies on the labour market are likely to reduce in number, thanks to the optimisation, the state administration would increase wages for public servants. The payroll fund for retained employees is likely to increase and some former state employees are likely to get jobs in affiliated organizations. The optimisation of the state apparatus should complete by January 1st, 2018, and some former civil servants are likely to join the ranks of the unemployed.