The Central Bank saw a threat to the economy in the withdrawal of money abroad by citizens
MOSCOW, May 26 (Reuters) – Transfers by Russians from Russia to accounts with foreign banks and brokers have increased significantly in 2022, posing risks to citizens, liabilities of Russian banks and the economy as a whole, the 2022 Financial Stability Review has said. .
According to the CBR, at the turn of 2022 and 2023, the trend of a decrease in foreign currency deposits of individuals in Russian banks and an increase in the volume of foreign currency transfers of the population to foreign banks continued.
In total, in 2022 and in the first quarter of 2023, Russians reduced the volume of foreign currency deposits in Russian banks by 3.1 trillion roubles, while the volume of foreign currency transfers to own accounts in non-resident banks for this period amounted to 2.6 trillion roubles, and the volume of foreign currencies in box office increased by 1.9 trillion rubles.
“Continuous fundraising outside of Russia increases the risk of these assets being restricted by hostile countries, as well as risks to the financial stability of foreign financial organizations,” the Central Bank writes.
The risk of further blocking of foreign securities purchased using Western infrastructure remains high, the regulator believes.
To protect investors from the risk of sanctions, the CBR has already restricted purchases of securities by issuers from countries that are “unfriendly” to unqualified investors.
This, along with other restrictions, has prompted individuals to buy foreign securities from non-resident brokers.
According to the Central Bank, transfers of Russians to foreign brokers in 2022 increased 16 times compared to 2021 to 228 billion rubles, in 2023 this trend continued – 50 billion rubles in the first quarter of 2023.
“In the longer term, if the confidence of private investors in the Russian stock exchange falls, there is a risk of an increase in citizens’ savings in foreign instruments and an outflow of funds from the Russian banking system, as well as a decrease in the ability of companies to obtain long-term financing,” the Central Bank believes.
(Elena Fabrichnaya. Edited by Oksana Kobzeva)