Debt and demand for currency. Why foreign exchange reserves lost $1.9 billion over the year

Debt and demand for currency. Why foreign exchange reserves lost $1.9 billion over the year
Photo is illustrative in nature. From open sources.
International reserve assets of Belarus amounted to $7,468.5 million (in equivalent) on January 1, 2021, according to preliminary data, reported the press service of the NATIONAL BANK. According to the guidelines of the monetary and credit policy for 2020, the reserves should have amounted to at least $7.3 billion on January 1, 2021.
 
In December, international reserves rose by $92.1 million (1.2%) after declining by $109.2 million (1.5%) in November.
 
Overall, international reserve assets decreased by $1.9 billion, or 20.5%, for 2020.
 
The decline in the level of foreign reserves in 2020 is mainly due to the scheduled repayment of foreign and domestic liabilities in foreign currency by the government and the National Bank in the amount of $3.9 billion, including $227 million in December, as well as the sale of foreign currency by the National Bank on the Belarusian Currency and Stock Exchange.
 
In 2020, gold and foreign exchange reserves were maintained by the Ministry of Finance's placement of foreign and domestic bonds denominated in foreign currency, attraction of external government loans, other foreign currency inflows to the budget, as well as growth in the value of monetary gold.
 
According to the Monetary Policy Guidelines for 2021, the volume of international reserve assets as of January 1, 2022, taking into account the redemption of domestic and external liabilities in foreign currency by the government and the National Bank must be at least $6 billion.
 

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