In the first quarter of this year, Russians reduced their purchases of foreign currency on the stock market. The overall volume of currency bought fell, dropping from 390 billion rubles to 265 billion rubles when measured in ruble terms, compared with the last quarter of the previous year. The data come from the Central Bank of the Russian Federation in its review titled Overview of the main indicators of professional participants in the securities market.
From the Central Bank’s perspective, the January to March period marked the lowest level of foreign exchange purchases since the first three months of 2022. Within that total, purchases of US dollars and euros declined noticeably, moving from 381 billion rubles to 231 billion rubles. By contrast, buying of yuan and other currencies, along with precious metals, rose from 9 billion rubles to 25 billion rubles.
The review notes that a significant portion of the currency bought by Russians was transferred to foreign accounts, including payments for goods and services purchased abroad. This pattern aligns with a broader trend in which residents use foreign exchange transactions to settle cross-border obligations and diversify holdings beyond the domestic financial system.
Regulators pointed out that the lower volume of currency purchases occurred alongside a weakening ruble. Between January 1 and April 5, the dollar appreciated by more than 10 percent against the ruble, the yuan gained around 13 percent, and the euro rose roughly 16 percent. These movements amplified the impact of exchange rate shifts on both household budgets and business planning, prompting renewed attention to how exchange rate dynamics feed into domestic prices and import costs.
According to the Central Bank, the decline in demand for foreign currency from individuals created a countercyclical effect on the exchange rate, particularly in the context of exporters experiencing reduced foreign exchange revenues. The regulator’s assessment suggests that fluctuations in residents’ currency purchases can influence the balance of supply and demand in the currency market and, in turn, affect short-term exchange rate volatility.
Looking back at the year 2022, the central bank observed that the first quarter saw a substantial drop in dollar purchases by individuals, with a larger decrease than in euro purchases. The significance of precious metals and yuan purchases at that time remained comparatively small, underscoring the evolving composition of household currency preferences in the domestic market. These historical comparisons help illuminate how policy signals and market sentiment translate into real-world consumer and business behavior, shaping the trajectory of currency flows over successive quarters. [Source: Central Bank of the Russian Federation]