Russia’s Currency Reserves Drop to 16-Year Low as Sanctions Bite and Capital Flees

https://united24media.com/latest-news/russias-currency-reserves-drop-to-16-year-low-as-sanctions-bite-and-capital-flees-5621
 

 

Currency reserves in Russian banks have fallen to their lowest level in 16 years as Western sanctions tighten and financial ties with global markets weaken according to a Moscow times report on February 4.

As of November 2024, client accounts of individuals and businesses in Russian banks held $159 billion, the lowest amount since 2008, according to data from the Central Bank of the Russian Federation.

In December, client accounts saw an outflow of $4.9 billion, bringing the total decline in the fourth quarter to $15.9 billion, according to estimates by Yegor Susin, managing director of GPB Private Banking. Since the beginning of the war, foreign currency accounts have shrunk by 40%, or $104 billion, marking the largest recorded outflow in available Central Bank data.

Individuals have withdrawn $52 billion, partly due to the departure of hundreds of thousands of citizens who took their savings with them. Businesses have withdrawn or converted $44 billion, reducing their pre-war currency reserves by one-third.