According to the National Bank, in March 2016, the population sold USD 191 million on a net basis, which, including the first EFST tranche worth USD 500 million, enabled the National Bank to increase its reserves by USD 80.4 million to USD 4.2 billion and meet its internal and external liabilities. The population has sold its currency savings due to growth in utility bills and increased spending in March because of public holidays. Amid contained wage growth, currency supply will exceed demand from the population until the summer vacation period. In addition, banks are likely to see an outflow of foreign currency deposits, some of which may be used for current consumption, and expand financial instruments for investment by banks and government agencies. As well, prices and public services tariffs are likely to continue to grow. In the absence of new guaranteed loans, until the new issue of Eurobonds, population will remain the main source of currency for the banking system and the National Bank.
