Experts noted the growing popularity of deposits in yuan
In general, in the current environment, analysts call the yuan a stable currency, suitable for accumulating savings and protecting against the weakening of the ruble. RMB inflation is significantly lower than in Western countries and Russia, and China's economic and foreign trade importance ensures the reliability of the currency.
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Earlier, the Bank of Russia noted the continuing trend towards an increase in the share of the yuan both in settlements for foreign economic transactions and in the domestic exchange and over-the-counter markets (May's Financial Markets Risk Review). According to the regulator, the increase in demand for the currencies of friendly countries in the Russian market is a long-term trend due to the current geopolitical situation. Also in the review for June, the Central Bank stated the growth of the share of the yuan in the exchange market up to 39.8 percent.
“Our forecast suggests that over the next year's horizon, the yuan is more attractive to hedge ruble volatility than the US dollar. Despite the yuan's decline against global currencies in the past quarter, we note that the USD/CNY exchange rate is almost unchanged from 2010 levels. And periodic short-term volatility against the dollar is a standard phenomenon in global markets and can also be observed in the currencies of developed countries, analysts at BCS Mir Investments believe. “Thus, we view the yuan as a relatively stable and strong currency, which is suitable for the formation of foreign exchange savings and hedging the volatility of the Russian ruble.”
Since the beginning of the year, BCS Bank has seen a two-fold increase in deposits in Chinese yuan (CNY) both in terms of the amount and the number of clients opening such deposits. There is also a stable demand for currency exchange operations and transfers in CNY. According to the bank's statistics, 40 percent of all foreign exchange transfers are in yuan, which is quite logical: the Celestial Empire's currency is replacing the dollar and the euro. At the same time, the bank notes that depositors are interested not only in term deposits, but also in savings products that can be replenished at any time and withdraw funds, if necessary, up to a minimum balance.
“That is why, in addition In addition to ordinary deposits, we create products that allow you to place funds in RMB for a short period of time and have the opportunity to withdraw them at any time without losing accrued interest — for example, for investment purposes. An important nuance lies in the fact that interest is accrued on the daily balance, and not on the minimum monthly balance, as is often the case in the market,” comments Andrey Karyakin, Director of Retail Business at BCS Bank.