Foreign currency deposits and their significance for the Russian economy

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The position of deposits of Russian banks perfectly reflects the recent situation in the global economy. According to recent investment trends, the amount of funds invested by compatriots in the national currency is rapidly increasing. This growth is provided by ruble deposits. Currency deposits, in turn, are less popular.

What is connected with their inability to provide the necessary level of security of the accumulated capital of the investor, comparable to the difference in interest on deposits in national and foreign currencies. Thus, the difficult post-crisis situation in Europe, the aggressive foreign policy of the United States and the lower interest rate on deposits in euros or dollars make it possible for the domestic currency to become a carrier of capital, with the help of which Russians will be ready to save their savings. Consequently, foreign currency deposits in banks today began to occupy less than half of the entire deposit market. And according to statistics, the ratio in this case is 65% to 35%.

Foreign currency deposits

From a strategic point of view, it is much more profitable for Russians to deal with the domestic currency and keep capital in it. Money today is not only a means of ensuring the process of exchange of values, but also the debt obligations of the issuing states. And since these are debt obligations, then their owners, it turns out, are creditors with foreign currency deposits. Interest on the deposit in this case is a remuneration for borrowed funds, and banks are financial intermediaries that provide lending to the economies of the issuing countries of funds. But should the Russians help the US or Europe, having a whole bunch of internal diseases of their own economy? There is only one answer - of course not!

Should I keep capital in rubles?

However, the domestic monetary system for the newest period of its existence has brought many surprises to the holders of ruble deposits. Which, in turn,

forces even the most patriotic compatriots, abandoning their own principles, to buy foreign currency. But today times have changed a bit. As we can see, the financial system around the world is shaken by the impact of the crisis. The American dollar is waiting for the adoption of the budget and the next stage of the inclusion of printing presses, which may end in default. The euro, in turn, has been suffering from a crisis for several years now. The south of the European Union is rapidly impoverished and ruined. Russia, in turn, in this difficult economic situation is confident, selling a lot of oil, gas andearns a steady income. The government of our country, while the leaders of other states are drowning in debt and cutting costs, is constantly trying to implement ambitious, costly projects, using ruble deposits. Foreign currency deposits in this situation help only the emitting countries of funds, but not our great motherland. A default of the euro or the dollar today is just as likely as the fall of the ruble. But is it worth it to feed the economies of foreign countries, which are not always friendly towards our homeland, by making hard currency deposits and proportionally influencing their standard of living? Each Russian can independently cope with this issue, having decided in what form to save capital.