What is the return on deposits in exotic currencies

“Friendly” currencies are slowly but surely replacing “toxic” currencies in individuals’ deposits. In addition to the yuan, which is in the greatest demand among bank customers, credit organizations offer deposits in more exotic currencies. In particular, there is growing interest in the United Arab Emirates (UAE) dirham, one of the attractive features of which is its pegging to the US dollar. Banks also have deposits in Indian rupees and Kazakhstani tenge, but the demand for these instruments remains spotty.

Reset toxicity

According to the Bank of Russia, as of June 1, the share of “toxic” currencies, primarily dollars and euros, in foreign currency deposits of individuals in Russian banks decreased up to 86.6%. In monetary terms, this is about 3.25 trillion rubles. ($40.1 billion). This is 1.4 times less than a year ago. Over the same period, the amount of funds in “non-toxic” currencies increased by almost 20 times, to 500 billion rubles. (equivalent to 44 billion yuan, CNY).

Definitely yuan. takes leading positions among “friendly” currencies in deposits, including against the backdrop of growing trade with China.

However, Russian banks offer clients to open accounts and deposits in other “friendly” currencies with their own characteristics. “In general, since January this year, the portfolio of deposits in “friendly” currencies has increased by 50%,” Sberbank noted.

dollar to replace

Among the “friendly” currencies, the UAE dirhams also stand out. Deposits in this currency are currently opened by Sberbank, Credit Europe Bank and Metallinvestbank. This monetary unit has a number of advantages, first of all, it is a link to the US dollar.

“The dirham can potentially be used as a defensive asset, a deposit in this currency can be considered as an alternative to a deposit in US dollars,” explains Svetlana Kroshkina, Senior Vice President of Metallinvestbank.

So far, the longest deposits are opened for a period of one year. The highest rate is set for such deposits: in Metallinvestbank – 2.1%, in Credit Europe Bank – 3%, in Sberbank – 3.04% (taking into account the capitalization of interest that is accrued monthly). At the same time, Sberbank maintains such conditions for a deposit when opening a deposit by July 31. Starting next month, the rate returns to its previous value of 2.02%.

For shorter periods, banks accept deposits at a lower rate. In particular, the rate for placement of funds for three months in Metallinvestbank will be 1.35% per annum, in Credit Europe Bank and Sberbank – 2.25% per annum. At the same time, in Sberbank and Credit Europe Bank, the minimum deposit amount is 5 thousand AED (more than 120 thousand rubles), while in Metallinvestbank the amount is less – from 2 thousand dirhams (less than 50 thousand rubles). “Currently, the most popular terms for this deposit in the bank are the classic six months and one year,” notes Ms. Kroshkina.

At the same time, in Metallinvestbank, a deposit can only be opened by bank transfer, while in Sberbank and Credit Europe Bank – both in a mobile application and in bank branches (for Sberbank – in branches that work with dirhams). “Through July 31, inclusive, a preferential conversion rate from rubles and dollars will be available on the deposit,” Sberbank noted. Thus, the spread between buying and selling dirhams for rubles in a bank is only 2.5%, while for dollars it exceeds 6%. At the same time, cash dirhams are also accepted at Sberbank branches, but only rubles can be withdrawn from the account in cash.

soft exotic

Deposits in Indian rupees are still single offers. This currency is not freely convertible. A deposit in rupees at 3% per annum is offered by the St. Petersburg Social Commercial Bank (PSCB). The minimum deposit is 100 thousand INR (about 110 thousand rubles), the deposit term is one and three months. Payment of interest on the deposit is made to the current account monthly or at the end of the term – at the choice of the client. Additional operations on the deposit are not provided. The opening is available both at PSKB offices and remotely.

The Ural Bank for Reconstruction and Development (UBRD) offers clients deposits in Kazakhstani tenge. The rate is 0.1% per annum. The minimum deposit amount is 400 thousand tenge (about 82 thousand rubles), you can open a deposit for a period of three or six months. Making a deposit is available at the bank’s offices. Funds are deposited by transfer from a bank account in tenge or Russian rubles. “Currently, tenge deposits remain a niche product. The dynamics of demand for them does not show a clear increase or decrease,” says Evgeny Vyatkin, Managing Director of the UBRD Liabilities Raising Business Development Center.

Vlad Urgent