Money supply in Belarus up 23.6% in 2023

MINSK. Jan 15 (Interfax) - Broad or M3 money supply in Belarus rose 23.6% to 75.67 billion Belarusian rubles during 2023, the National Bank of Belarus said.

Money supply rose 5.6% in December and 1.8% in November after falling 1.5% in October. The increase in December was driven by sharp growth in retail and corporate local and foreign currency accounts, backed by a marked increase in cash in circulation and corporate term deposits in local currency.

Cash in circulation or M0 money supply grew 37.4% during 2023 to 9.47 billion Belarusian rubles and grew 5.1% in December alone.

M1 active ruble supply grew 33.9% in 2023 and 12.8% in December to 24.5 billion rubles. Current corporate accounts held 8.04 billion rubles, up 17.1% in 2023 and up 12.8% in December, and retail deposits held 6.99 billion rubles, up 53.8% in 20232 and up 25.1% in December.

Local currency term deposits totaled 15.73 billion rubles, up 34.9% in 2023 and up 5.4% in December: retail deposits rose 25.6% in 2023 and 2.8% in December to 8.01 billion rubles and corporate deposits rose 46.2% in 2023 and 8.3% in December to 7.72 billion rubles.

National definition or M2 money supply, including M1 supply and ruble term deposits, was 40.24 billion rubles as of January 1, up 34.3% in 2023 and up 9.8% in December.

Securities issued by banks and circulating outside banks denominated in the national currency rose nearly 50% in 2023 to 1.76 billion rubles while in FX they fell 44.4% to $124 million.

The ruble M2 aggregate, which is M1 supply plus other ruble deposits and retail and corporate funds in ruble-denominated securities, rose 34.7% in 2023 and 8.2% in December to 42 billion rubles.

Forex deposits grew 12.9% in 2023 and 2.3% in December to the equivalent of 33.2 billion rubles.

Forex deposits in dollars fell 2.7% in 2023 and grew 0.2% in December to $10.45 billion. Term deposits in FX fell 13.6% in 2023 and 0.3% in December to $5.4 billion, including retail deposits $2.97 billion, down 17.1% and down 1.2%, respectively, and corporate deposits $2.43 billion, down 8.8% in 2023 and up 0.9% in December.

FX current accounts rose 12.3% in 2023 and 0.8% in December to $5.05 billion, with corporate accounts rising 1.9% and falling 2% to $3.42 billion and retail growing 43.4% and 7.1%.

Precious metal deposits decreased 40% in 2023 to $23.7 million.

Broad money supply rose 4.7% in 2020, and 7% in 2021 and 12.7% in 2022.