Russians are increasing their use of the Chinese yuan in place of the euro, a trend that will be explored at the 14th VTB Investment Forum “RUSSIA IS CALLING!” according to Georgy Gorshkov, a deputy chairman of VTB and the chairman of its board, who cited data from the bank’s client base.
From January through November 2023, the savings portfolios of VTB clients held in Chinese currency more than doubled, rising to 12.7 billion yuan. This growth pushed the share of foreign currency deposits in clients’ portfolios above 24 percent, surpassing the euro’s 17 percent share. Gorshkov noted that this shift mirrors trends seen across the wider banking sector. Based on VTB forecasts, by year-end China’s yuan could account for over a quarter of customers’ foreign currency savings, making it the second most popular currency for storage of value.
Despite the continued lead of the US dollar, Russians are gradually reducing their reliance on it. Many investors are converting existing savings into dollars and euros while preferring ruble-based instruments for liquidity. In this mix, ruble deposits now command roughly 90 percent of VTB’s retail savings portfolio.
Depositors are increasingly drawn to high-yield ruble deposits, even as rates rise. The surge in popular rates this year has sparked a robust demand from individual savers. Alongside this, there is a noticeable diversification away from the dollar toward currencies of friendly countries, with the yuan being a particularly strong option for many. Analysts expect the yuan’s share of the market’s savings to grow—likely reaching around 70 billion yuan by year-end as more individuals diversify their funds beyond the ruble and the dollar.
In early November, VTB expanded its deposit offers in Chinese currency, with annual yields reaching around 3.8 percent. The broader policy environment also plays a role: when the Central Bank of the Russian Federation raised the key rate by 200 basis points to 15 percent on October 27, banks responded by increasing ruble deposit rates as well, with the top rate for ruble deposits climbing to the mid-teens range.
As these shifts unfold, market observers note that the move toward yuan deposits reflects both a search for diversification and a response to evolving domestic monetary policy. Analysts emphasize that while the dollar remains dominant, the mix of currencies held by ordinary savers is becoming more varied, with the yuan emerging as a credible alternative for hedging and liquidity in a changing financial landscape. A report attributed to the Central Bank of the Russian Federation underscores these dynamics and highlights ongoing adjustments within household and retail savings portfolios as institutions and households adapt to higher rates and shifting currency preferences.