Central Bank: the share of foreign currency deposits of individuals in June decreased to 11.5%, updating the minimum of 2007

By the end of June, the annual increase in the funds of Russians in banks increased from 5.4% to 7.2%, follows from materials Bank of Russia (Central Bank; Central Bank). In the segment of long-term ruble deposits, there was also an increase in activity, while at the same time, Russians’ interest in savings in foreign currency remained low. At the end of June, the share of foreign currency deposits of individuals decreased to 11.5%, having updated the minimum of the end of 2007 – 12.9%.

Near-zero rates and the desire of banks to limit their foreign exchange transactions by introducing fees for servicing foreign currency accounts made deposits in foreign currency largely unattractive for depositors, the Central Bank explains the current situation. “Together with the strengthening of the ruble, this led to the fact that the value of the retail deposit portfolio decreased from 14.0% to 11.5% and, thus, updated the historical low of the end of 2007 (12.9%),” the commentary says. “Monetary Conditions and the Transmission Mechanism of Monetary Policy”.

In mid-July, the Bank of Russia predicted an increase in the volume of short-term ruble deposits and a decrease in the value of deposits. Despite the downward trend in deposit rates, Russians prefer to save rather than spend free funds, the Central Bank said.

Read about foreign exchange transactions in the publication “Kommersant” “Summer Currency Games”.

Maria Fedotova