Russian banks are recording an increase in the share of individuals’ yuan deposits due to the exit from the dollar and euro. Already, the share of Chinese currency in foreign currency deposits reaches 26 percent in some credit institutions and may exceed 50 percent by the end of 2024. In this respect “Rossiyskaya Gazeta” relevant experts said.
According to the Central Bank, the total volume of deposits in friendly currencies has been growing steadily since 2022, and in January 2024 their share amounted to 23% of all foreign currency deposits of Russians. About 90% of these are denominated in yuan. The share of individuals in foreign currency deposits doubled last year, increasing by 10.6 points.
The share of yuan deposits in DOM.RF Bank has increased from 11% to 26% since the beginning of 2023. At VTB, Chinese currency currently accounts for 36% of foreign exchange deposits, or 13.6 billion yuan. The bank predicts that this figure could reach 23 billion yuan, or half of all foreign currency deposits, by the end of 2024.
“Ryuan replaces previously purchased dollar and euro investments. The vast majority of new deposits are opened in Chinese currency,” said VTB Senior Vice President Dmitry Breitenbicher.
PSB notes that the growth in the share of the yuan is associated with an increase in the rates of such deposits – up to 4.5-5% annually in February – March. Demand is also supported by the development of yuan-denominated loans. Bankers also point to the strengthening role of the Chinese currency in international payments.
previously economist guess Prices at Russian gas stations in April.
previously Ukraine accepted new multimillion dollar loan.
What are you thinking?
Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.