The traditional investment of savings in dollars, euros and Swiss francs carries great risks for Russians. It is possible to freeze assets in “hostile” currencies. This opinion was expressed in an interview with socialbites.ca by a candidate of economic sciences, associate professor at the department of global financial markets and fintech at the Russian University of Economics. GV Plekhanova Ilyas Zaripov.
He added that Russian banks have introduced or are introducing fees for transactions with such currencies and other restrictions.
“Before buying foreign currency, you need to decide your purpose. If money is needed for payments for a certain period of time (a business trip, tourism), you should purchase the required amount or with a small margin. If the currency is used to generate savings, you need to choose stable foreign currencies that are not too sensitive to devaluation. In this case, you may consider investing in Hong Kong dollars and UAE dirhams as well as Chinese yuan.”
He explained that these currencies are quite stable and the demand for them from Russian companies is increasing in the environment of intensified cooperation between Russia and the UAE and Hong Kong. According to Zaripov, the Kazakh tenge, Turkish lira or Indian rupee is no longer worth buying: they have increased volatility. And rupees cannot be taken out of India.
The economist advised Russians to keep most of their savings in rubles and only a small part in foreign currency, preferably in yuan, Hong Kong dollar and UAE dirham. Instead of investing directly in foreign currencies, it would be better to buy securities based on them or substitute bonds, he added.
“The US dollar is losing its leadership in Russians’ wallets quite sharply. “And quite quickly – in 2024-2025 – with continued sanctions and similar political conditions, the Russians will abandon the dollar and replace it with stable currencies of friendly countries,” he said.
Senior banker of VEB.RF, former Deputy Minister of Finance of Russia Sergei Storchak in an interview with socialbites.ca statedThere are now few prerequisites for abandoning the US dollar.
Previously happened It is known which country can contribute to de-dollarization.