the volume of yuan in clients’ foreign currency savings has doubled – Kommersant

Savings of individuals at VTB Bank in Chinese yuan more than doubled over the period January-November 2023, to 12.7 billion yuan. This was announced by Deputy Chairman of the VTB Board Georgy Gorshkov at the VTB investment forum “Russia Calling!”

“According to the results of January – November, the portfolio of savings of VTB clients in Chinese currency more than doubled, to 12.7 billion yuan. As a result, its share in depositors’ foreign currency savings exceeded 24% and overtook the share of the euro (17%),” said Georgy Gorshkov (quoted by TASS).

According to a VTB representative, this trend is typical for the entire market as a whole. According to VTB forecasts, by the end of the year the yuan will most likely take up more than 25% of clients’ foreign currency savings, displacing the euro. At the end of the year, VTB predicts an increase in the portfolio of individuals’ savings in yuan in the market as a whole by 60%, to 70 billion yuan.

However, as Georgy Gorshkov emphasized, according to VTB, the dollar still leads in the structure of foreign currency savings, while clients seek to convert existing savings into dollars and euros. According to the deputy chairman of VTB, the main interest of clients is focused on high-yield ruble deposits. “Against the backdrop of an increase in the key rate, banks offered the population record rates for this year, which provoked a powerful wave of demand from individuals. At the same time, to diversify their available funds, Russians also choose the currencies of friendly countries, primarily the yuan,” added the top manager.

Banks continue selectively increase rates on deposits in yuan. The maximum return that yuan investors can expect is up to 4%. Experts say that banks that have requests for this currency from corporate businesses are willing to pay more for the yuan to retail clients.

More details in the material “The Yuan has shown selective returns”.

Anastasia Larina