In July, cash held by Russians declined by 0.6 billion dollars, bringing the total to 96 billion dollars. This shift was noted in the latest briefing, relying on calculations from a BKF bank analyst. The observation highlights a broader move in cash management among residents and provides insight into how currency behaves in a changing economic landscape.
Further analysis of the Central Bank of the Russian Federation’s statistics shows that, in July, deposits of Russian residents in foreign banks rose by 0.9 billion dollars, reaching 73.9 billion dollars. At the same time, deposits in Russian banks decreased by the same amount to 44.4 billion dollars. This pattern points to a preference among some households for diversification, with funds moving across borders in search of perceived stability or different market opportunities.
Officials note that the shift involves a transfer of cash and deposits away from domestic custodians toward international financial institutions. The analyst emphasized that the total amount of cash stored outside formal banking channels, sometimes referred to as funds kept at home or under the mattress, fell by 0.6 billion dollars in July, to 96 billion dollars. This trend suggests a loosening of pressure on cash hoards, even as other financial channels expand.
The main driver identified is a series of restrictions imposed by the central bank regarding foreign currency deposits, initially introduced in March 2022. These policies appear to have influenced savers to reconsider how they hold foreign exchange. In addition, the analyst noted a rise in investments by Russian citizens in the shares of foreign companies, denominated in foreign currency. He reported that such investments increased by 1.2 billion dollars in July, indicating a shift toward equity exposure abroad as part of broader diversification strategies.
By the end of August, central bank observers noted a cautious improvement in consumer financial activity. In July, the total population’s deposit base across the banking system in the Russian Federation rose by about 1.1 percent, signaling continued household engagement with formal savings channels despite regulatory constraints. Market participants and analysts alike watch these dynamics to gauge how policy actions shape ordinary savers and the flow of funds through both domestic and international financial pathways.
Historically, measures restricting foreign currency withdrawals have influenced savers to seek alternative avenues for liquidity and yield. The current data reflect an ongoing recalibration of preferences: some households favor the guaranteed safety and accessibility of domestic banks, while others pursue exposure to foreign currency and international markets through foreign institutions or cross-border investments. The net result is a layered landscape where both cash holdings and deposit patterns evolve in response to policy signals, macroeconomic expectations, and global financial conditions.
This evolving environment invites a closer look at how currency controls, inflation dynamics, and exchange rate expectations interact with consumer choices, asset allocation, and risk tolerance across households in Russia and beyond.