National Bank reveals what helped bolster Belarus' forex reserves in 2022

At an expanded meeting of the Board of the National Bank of Belarus, First Deputy Chairman of the Board Sergei Kalechits told what helped maintain the adequate level of gold and foreign exchange reserves in Belarus in 2022, BelTA informs.

“Favorable trends in foreign trade in many ways contributed to maintaining the stability of the foreign exchange market in 2022. As a result of the record foreign trade surplus, enterprises received $2.7 billion in net revenue in 2022. The balanced situation in the foreign exchange market made it possible to prevent an excess decrease in gold and foreign exchange reserves. Moreover, according to preliminary data, as of 1 January 2023, international reserve assets amounted to $7.9 billion (2.2 months of imports) while the target for the end of 2022 was at least $7 billion. In 2022, gold and foreign exchange reserves shrank by $0.5 billion,” said Sergei Kalechits.

The measures that contributed to maintaining the necessary amount of gold and foreign exchange reserves included the purchase by the National Bank of foreign currency in the domestic foreign exchange market, the receipt of foreign currency by the Finance Ministry, as well as the postponement of debt payment to the Russian Federation. In addition, a part of external public debt was paid in Belarusian rubles due to the de facto ban for Western banks to carry out financial transactions with the government of Belarus.

Work to bolster international reserve assets will continue throughout 2023. “Taking into account the upcoming external debt payments, Belarus' 2023 Monetary Policy Guidelines provide that the international reserve assets should make up at least $6 billion at the end of this year, Sergei Kalechits noted.