Unexpected growth for Russians’ foreign-currency deposits

In early November, Russians’ foreign-currency deposits in Russian banks have shown growth for the first time since May 2022, reaching the total worth of $27.1 bln, according to an analysis of the Central Bank’s data by RIA Novosti.

Foreign-currency deposits have been constantly on the decline since May 2022, remaining stable only in November 2022. However, this November, conventional foreign-currency deposits grew by 1% as opposed to the previous month, reaching $27.1 bln, or almost as high as the September levels. Overall, the amount of foreign-currency deposits has been historically at its lowest since early 2008.

“A poll by the National Public Opinion Center shows that only 14% of Russians keep their savings in foreign currencies. Since May 2022, foreign-currency deposits have been continuously decreasing. However, after the Central Bank raised the key rate once again, there was a notable spike in interest in bank deposits. I believe we are observing cause and effect,” comments Artem Deev, head of the analytical department at AMarkets.

The total volume of foreign-currency assets held by individuals in Russian banks grew by 0.3% in November to $41.7 bln, also showing growth for the first time since May 2022.

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