Central Bank: it is incorrect to talk about the flow of foreign currency deposits to foreign banks

Deposits of Russian citizens in foreign banks from January to November 2022 increased by 2.5 times and reached $82 billion. However, according to representatives of the Bank of Russia (CB), it is incorrect to believe that these figures indicate the movement of foreign currency deposits of Russians to non-resident banks , according to Reuters.

“It is not quite correct to speak unequivocally about the flow of foreign currency deposits to foreign banks from Russian ones. To conduct a detailed analysis, it is worth looking at the dynamics and structure of savings of the population as a whole,” the press service of the regulator said.

The Central Bank confirmed that the population’s foreign currency funds in Russian banks decreased by 41%, or $38 billion, last year. “But it is worth noting that the reduction was only partially due to outflows, and the conversion of deposits into rubles within the Russian banking sector was also actively taking place. In addition, part of the savings, among other things, could be directed to the acquisition of real estate as one of the alternative ways of investing,” the Central Bank explained.

According to the Central Bank, over the 11 months of last year, the amount of funds that citizens keep outside of Russia has almost tripled. Over $4 billion went abroad in February 2022, after the outbreak of hostilities in Ukraine. The maximum inflow of deposits of Russians in non-resident banks last year was recorded in September against the background of the announcement of partial mobilization in Russia – more than $ 9 billion.

More details – in the material “Kommersant FM” “Money relocated after the Russians”.