Russian banks are reporting a noticeable shift in household deposits away from traditional hard currencies toward the yuan. In several institutions, the share of yuan in foreign currency deposits has risen to around a quarter and could push past half of total foreign currency deposits by the end of 2024. Experts cited by Rossiyskaya Gazeta highlight this growing appetite for Chinese currency as part of a broader move by savers to diversify and chase better yields. (Rossiyskaya Gazeta)
Data from the Central Bank show that deposits held in friendly currencies have been on a steady climb since 2022. By January 2024, these deposits represented about 23% of all foreign currency deposits held by Russian residents, with roughly 90% of that portion denominated in yuan. The share of individuals in foreign currency deposits nearly doubled last year, rising by more than 10 percentage points. The trend underscores a persistent reallocation of savings away from the dollar and euro toward the yuan as the Russian financial system adapts to changing global finance dynamics. (Central Bank reports, cited by Rossiyskaya Gazeta)
Specific banks illustrate the trend in different scales. DOM.RF Bank has seen the yuan share climb from 11% at the start of 2023 to 26% presently. At VTB, the yuan already accounts for about 36% of foreign exchange deposits, totaling around 13.6 billion yuan. Bank executives project continued growth, with a forecast that the yuan share could reach around 23 billion yuan, equating to roughly half of all foreign currency deposits by the close of 2024. (Bank disclosures, Rossiyskaya Gazeta)
Industry commentary attributes the shift to a preference for yuan-denominated accounts and instruments. A senior executive from VTB notes that new deposits are predominantly opened in Chinese currency as savers seek higher yields and stability amid volatile traditional currencies. The move reflects a broader assessment of risk and opportunity in the currency mix chosen by households and institutions alike. (Dmitry Breitenbicher, VTB, Rossiyskaya Gazeta)
PSB has observed that the rising share of yuan deposits coincides with higher yields on these deposits, estimated in the 4.5% to 5% annual range during February and March. The demand is reinforced by the expansion of yuan-denominated lending and by the growing role of the yuan in international payments. Industry players point to improved liquidity and the potential for yuan-based settlements to gain traction in cross-border activity. (PSB market notes, Rossiyskaya Gazeta)
Analysts note that this shift is part of a larger pattern in which savers look beyond traditional currencies to diversify risk and optimize returns. While the dollar and euro continue to be common anchors, the yuan’s appeal has grown as Moscow strengthens its financial ties with Chinese banks and as yuan-denominated financial products become more accessible. The development also mirrors broader efforts in many markets to widen the menu of reserve currencies and payment currencies used in everyday banking. (Market analysis, Rossiyskaya Gazeta)
Looking ahead, observers caution that the pace and extent of yuan adoption will depend on regulatory signals, regional liquidity, and the ongoing evolution of cross-border payment corridors. Yet the current trajectory suggests that the yuan could solidify its place as a major currency within Russia’s retail and corporate deposit landscape, influencing savings behavior and the mix of FX assets held by residents. (Expert commentary, Rossiyskaya Gazeta)