Factors determining gold reserves (using the example of Belarus)

the relevance of this paper is the position of Belarus as a key country in the Central and Eastern European region, which in recent years has faced numerous challenges in the areas of foreign exchange reserve management, attracting foreign investment, and strengthening financial stability. It should be noted that the rational distribution of the reserve structure, including gold reserves, strengthening the country's financial stability, and the ability to control policy have become a top research priority requiring urgent attention. The aim of the study is to determine the maximum impact of determining factors on gold reserves using an empirical model, which will enable practical recommendations to be formulated for policymakers. In addition, this will increase the security of national reserves while complying with the principles of financial stability and external risk management. To achieve this aim, factors determining gold reserves are systematically analyzed based on data from Belarus for the period 2002-2023. The focus is on four key factors: 1) the volume of reserves forms the basis of the country's non-monetary capacity and overall economic security; 2) foreign direct investment reflects the degree of openness of the economy and the stability of capital inflows; 3) the share of social security and welfare expenditures in GDP reflects the structure of government budget expenditures and the focus on public welfare; 4) the net cash inflow from the operating activities of local authorities indicates the efficiency and liquidity of local fiscal operations. Based on the results of this study, the authors understand that examining the relationship between these variables and gold reserves using econometric analysis has revealed the logic behind Belarus' reserve policy, which can serve as a benchmark for other countries with developing market economies.

gold reserves, foreign direct investment (FDI), operating cash inflows (OCI), social security and social assistance (SSSA), reserve asset scale (RAS), Belarus