The people of Russia are preparing for a fall in the value of the ruble

According to “The Moscow Times”, in March, Russian citizens bought foreign currency in financial markets for 155.5 billion rubles (1.55 billion euros) more than they sold it. This indicator increased by 1.5 times in March compared to February.

As economist Dmitrijs Polevojs explains, more foreign currency was purchased in November-December 2023 alone than in March, when Russian citizens bought foreign currency worth 1.8-2 billion dollars. At the time, this was attributed to preparations for the Christmas holidays, during which many residents bought valuable gifts and went on trips.

“Russians operate cyclically in the market – when the ruble strengthens, they buy foreign currency. Sell ​​when the ruble gets weaker. In March, the ruble started to decline, also despite the fact that major exporters injected $12.1 billion worth of foreign currency into the market,” explains the economist.

The increase in demand for foreign currency looks logical, considering that the ruble was stable until the March elections, but after the elections it began to weaken.

The majority of foreign currency payments in Russia (81%) are still made in dollars and euros. Despite all the efforts of the Russian authorities, Russian citizens still prefer “toxic and unfriendly” currencies. Savings in the accounts of natural persons are shrinking, and as of March 1, only 24% of bank clients had savings in “friendly currencies”.