High interest rates on ruble deposits reduced devaluation fears

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April 22, 2016 18:45

A record-high growth in ruble deposits by the population during the past two years implies that devaluation fears have reduced. In addition, in December 2013 Belarus received USD 440 million from VTB Bank (Russia) and USD 500 million from the Russia’s National Bank. However, the interest rates on deposits will be gradually reduced. The banking sector and industries will increase pressure on the National Bank to remove restrictions on loans in the economy and to reduce interest rates on loans. The population will become a foreign currency net seller. 

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