According to the latest data from the Central Bank, from January to July, the average maximum rate on dollar deposits in the 30 largest banks in the country decreased from 3.36% to 1.99% per annum. On deposits in euros, the indicator fell almost twice - from 0.65% to 0.36% per annum.

Interviewed by RT experts explained this situation by trends in the global financial market. Today, the central banks of many countries are reducing key rates, and, consequently, interest on cash deposits in these countries is also falling.

Moreover, the Central Bank is now exploring the possibility of allowing credit organizations to introduce negative interest rates on foreign currency deposits. This was previously stated by the head of the financial stability department of the Central Bank, Elizaveta Danilova.

“Large banks put forward such proposals. They faced such a problem that their attracted funds are growing, and they are forced to place them abroad in foreign banks, to the detriment of themselves, ”Interfax quotes Elizaveta Danilova.

The work of Russian banks was complicated by the spread of the practice of zero and negative interest rates, which is traditionally used to accelerate economic growth. In recent years, it has been actively used in Europe and Japan. Moreover, after the increased risks of a recession in the States, Donald Trump also announced the need to reduce the interest rate in the US “to zero or lower.”

The growing popularity of negative rates has made deposits by Russian banks abroad unprofitable. First of all, we are talking about Europe, where the deposit rate is minus 0.5% per annum. About this in an interview with RT said the chief analyst of TeleTrade Group of Companies Pyotr Pushkaryov.

“According to Russian law, banks are obliged to provide their clients with deposits, even the most minimal, but positive percentage. As a result, the bank pays twice: both its customers and European banks for maintaining funds on their correspondent accounts in Europe due to negative rates, ”Pushkaryov explained.

In other words, Russian banks provide their customers with better conditions than they have when placing deposits in euros, and therefore work at a loss. As a result, many credit organizations have already tried to independently solve the problem and compensate for their losses.

“Some banks simply stopped opening euro accounts for customers, while others began to covertly or explicitly charge a certain fee on euro deposits. In fact, we are talking about a commission for storing money by analogy with a safe deposit box. However, instead of such strange commissions, it would be more convenient for banks to simply announce negative interest rates, so they turned to the Central Bank, ”added Peter Pushkaryov.

According to the expert, the bankers were frightened that a similar situation could soon happen with dollar deposits. Since the beginning of 2019, the US Federal Reserve has already twice cut its base interest rate from 2.25-2.5% to 1.75-2% per annum. If, under the pressure of Trump, the Federal Reserve sets the value to zero or lower, then deposits of Russian banks in the US currency will also become unprofitable.

In support of the ruble

It is noteworthy that the initiative of the Central Bank has already been supported by the Ministry of Finance. According to the deputy head of the department, Alexey Moiseev, the discussed innovation could further stimulate the process of de-dollarization of the Russian economy.

“To be honest, I strongly support the efforts of the Central Bank to de-dollarize the banking system. I believe that in our banking system there should be as few currency assets and liabilities as possible, ”Moiseeva quotes TASS.

According to analysts, instead of storing funds in euros and dollars, it will be more convenient for Russians to keep money on deposits in Russian currency. According to the Central Bank, today in the top 30 banks in Russia the average maximum rate on ruble deposits is 6.65% per annum.

“With the natural replacement of foreign currency deposits in rubles, the demand for rubles within the country should begin to grow. As planned by the authorities, this should further support the exchange rate stability of the national currency, ”said Vladimir Rozhankovsky, an expert at International Financial Center, in a conversation with RT.

Moreover, a reduction in deposits in dollars and euros will lead to a decline in foreign currency lending in Russia. As a result, the demand for ruble loans will increase and will also support the Russian currency. This was told in an interview with RT by Narek Avakyan, Head of Investments Department, BCS Broker.

Customer choice

However, while in the expert community there is no single assessment of the economic effect of negative rates on foreign currency deposits. According to the vice president of the RFI of the bank, Irina Chizhevskaya, most citizens do not have foreign currency deposits, so they will not feel the innovations in the banking sector.

As Narek Avakyan notes, the Central Bank’s initiative can spur ordinary citizens to refuse deposits and begin to keep their currency savings “under the mattress”. At the same time, professional investors, as an alternative to foreign currency deposits, will start buying Eurobonds - securities denominated in foreign currency.

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At the same time, Pyotr Pushkarev believes that some citizens - even taking into account the possible necessary surcharge - will continue to keep foreign currency on deposits. According to the analyst, a bank account will remain the most convenient and reliable means of storing money.

“By placing currency on a bank account, the client increases its mobility: at any time, money can be exchanged or transferred without leaving home. In addition, a deposit is much more reliable than a bank safe or cell. This is connected not only with the guarantees of the Deposit Insurance Agency, but also with several well-known cases when the values ​​or money stored in the cell disappeared without a trace. And, as it turns out, the bank under the contract is not responsible for this and is not obliged to observe who and how got access to the cell instead of the rightful owner, ”Pushkaryov concluded.