The share of foreign currency deposits of Russians has fallen to a new historical low

The valuation of personal funds in banks fell to a new minimum in June – 8.9%, according to a presentation by the director of the banking regulation and analytics department of the Central Bank, Alexander Danilov. The share of currency in deposits is slightly higher: within a month it even increased following the dollar, euro and yuan exchange rates – to 10% from 9.8% in May (still the absolute minimum).

People’s funds in banks are growing rapidly – but mainly due to current accounts, not deposits. In total, in June they increased by 816 billion rubles, or +2.1%, due to continued substantial budgetary payments, the Central Bank reports. Of these, 820 billion rubles. added current accounts (+6.2%) and term deposits – 87 billion rubles, while foreign exchange balances fell by $1.1 billion (-2.4%, or equivalent to 91 billion rubles).

Currency funds shrink due to the ongoing exchange of funds into rubles, foreign transfers, as well as cash withdrawals during the holiday season,” explains the Central Bank. The regular dollar and euro have become “toxic” for Russians, while the yuan is still unusual, according to the Central Bank, they account for 13% of foreign currency in banks. It’s not easy with cash. “Chinese yuan can be obtained in cash … They are not and will not be,” said Central Bank First Vice-President Dmitry Tulin.

The devaluation may continue, but not so quickly, believes Danilov.