Summer holiday season to boost demand for foreign currency from Belarusian population
According to the National Bank, in June 2017, the population increased demand for cash currency up to USD 444.7 million, which was the biggest demand since early 2017. Net currency sales totalled USD 661.9 million, hence clear currency supply totalled USD 217.2 million.
The demand for cash currency has stepped up in Belarus due to the summer holidays season, when many Belarusians go abroad. High demand for cash currency would retain throughout the summer. In addition, further weakening of the Belarusian rouble due to the fall in oil prices and wage growth could increase the pressure on the foreign exchange market, as well as the growth in imports by legal entities.
Yet, household incomes have not grown enough to prompt net demand for foreign currency from individuals, hence, the population is likely to ensure clean supply of foreign currency within USD 125-150 million per month.
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Situation in Belarus