<p>The client base of forex brokers in
Belarus jumped 30% during the first months of 2022 even as the share of
non-resident clients increased to 93.9% during the period. As of October
1, 2022, the total number of clients reached 239,400 clients. The figure previously stood at about 185,000 clients.</p><p>These numbers are based on details <a href=”https://arfin.by/rost-chisla-klientov-belorusskih-foreks-brokerov/”>recently published</a> by the
Financial Market Development Association of Belarus (ARFIN), a membership-based
union of organizations that operate on the over-the-counter (OTC) forex markets
in Belarus.</p><p>The increase in clientele comes despite heavy sanctions from the European Union and other Western countries <a href=”https://www.financemagnates.com/forex/brokers/justforex-suspends-services-for-clients-from-russia-and-belarus/” target=”_blank”>against Belarus</a> for its
involvement in Russia’s war against Ukraine. However, Alexei Sidorov, the Chairman of ARFIN,
<a href=”https://ru.financemagnates.com/kak-razvivaetsya-rynok-foreks-belarusi-v-novyh-realiyah/”>recently told Finance
Magnates RU</a> while the initial reactions of investors
were that of shock, with some retail customers withdrawing
their funds from their accounts, the situation stabilized in May “and, on the
whole, returned to the pre-war level.”</p><p>“Taking into account that since February, the National Bank of the Republic of Belarus has not introduced any
currency restrictions, including those related to transfers of funds in foreign
currency, withdrawal of foreign currency cash, etc. traders had complete
freedom in the disposal of their funds, which in turn, convinced retail
investors of the ability of Belarusian forex companies to fulfil their
obligations in full even in shock periods,” Sidorov explained.</p><p>Why Are Foreigners Dominating? </p><p>Also, the growth in the number of clients
of Belarusian forex brokers is reflected in the funds the firms have been
able to attract during the first three quarters of 2022. According to ARFIN, clients deposited
US$293.6 million in their accounts with forex brokers in Belarus. However, the majority of these funds, or 91.1%, were placed by
non-resident clients. </p><p>In comparison, client funds accumulated throughout 2021 stood at US$367.6 million. This means that brokerage firms in Belarus have been able to generate 80% of the total clients’ funds posted in 2021 in only nine months
this year, which is short by only US$74 million.</p><p>Meanwhile, slightly less than 2% of Belarus’ population participates in the country’s financial markets including
OTC forex markets, <a href=”https://ru.financemagnates.com/2-belorusov-torguyut-na-vnebirzhevom-rynke-foreks/”>a recent study</a>
carried out by the National Bank of the Republic of Belarus found. Additionally, the
research concluded that almost half (or 40%) of the population is not engaged in any
financial investment or in saving their money in any way. This probably explains why
non-resident clients constitute the largest depositors into forex brokerages in
the country. </p><p>Sidorov <a href=”https://ru.financemagnates.com/kak-razvivaetsya-rynok-foreks-belarusi-v-novyh-realiyah/”>explained that</a> the
dominating presence of non-resident clients in
Belarus is because “clients manage to ‘sell’ the Belarusian jurisdictions quite
successfully.” The Chairman of ARFIN also believes that Belarus’
‘advantages’ over regulated and unregulated financial jurisdictions including the permission of leverage of up to 200 are among the top reasons foreigners greatly outnumber locals in the country.</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
