In February, Russian foreign exchange savings advanced by 0.6 percent, reaching a new peak of 227.8 billion dollars. This update comes from analysis conducted by DEA News using data provided by the Central Bank of Russia, underscoring a sustained shift in household and consumer portfolio behavior within the national currency market.
The standout component of this growth was the segment housing citizens’ foreign exchange funds held abroad. This portion expanded by 3.1 percent, adding about 2 billion dollars and lifting the total to 67.8 billion dollars for February. Analysts note that the same rate of increase persisted for a second consecutive month, marking the slowest pace since May 2022 but still signaling continued interest in holding value outside domestic channels.
Additionally, a record was established for cash in circulation held by Russian residents, which rose by 0.9 percent or nearly 1 billion dollars, bringing the total cash in hand to 107.1 billion dollars. This surge reflects ongoing preferences for liquidity and the perceived ease of access to cash, even as broader financial flows evolve.
Conversely, foreign exchange deposits within Russian banks continued to decline, dropping by 3.1 percent or about 1.7 billion dollars, reducing total bank-held FX to around 53 billion dollars for the month. This shift suggests a preference among many individuals to reduce funds deposited with domestic financial institutions in favor of alternate holdings or direct access to cash and foreign currency.
Earlier communications from the Central Bank indicated that any policy decision to loosen restrictions on cash withdrawals would depend on the domestic currency dynamics and risk assessments, with parameters in place to maintain financial stability and orderly markets while monitoring the evolving balance of payments and resident savings patterns.