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It seems that most Russian citizens do not have personal savings. Analysts say this is the only plausible explanation for the fact that almost 70 percent of Russians are unconcerned about the weakening of the dollar. This might prompt the Central Bank to reduce its support for the US dollar.
The dollar started weakening against the ruble a year ago. During this period, the US currency has lost more than 10 percent of its value against the ruble, from 31.85 RUR/USD in February 2003 to 28.5 RUR/USD on February 10, 2004. Analysts expect the dollar to fall further. Oil prices remain high and the outflow of foreign currency declines. As a result, there are too many dollars on the Russian market, and the US currency is depreciating. In this situation, many people are concerned about their savings.
According to different estimates, Russians keep $30bn to $60bn in personal savings. However, a recent opinion poll showed that most Russians are not concerned about the weakening of the American currency. 68 percent of respondents said they were unconcerned, and only 26 percent said they were worried.
“I am not surprised. Some citizens don’t think even about the ruble. Apparently, their incomes are low, and they have no savings,” says Pavel Medvedev, Deputy Chairman of the State Duma’s Banking Committee. “Other people, who have more or less decent incomes, earn rubles. They have no reason for concern,” he added. According to Mr. Medvedev, the third group is concerned: “They have already saved something, and, unfortunately, the largest part of these savings is in dollars. And these savings are kept not in banks but under their beds. This is a double loss,” he said.
Meanwhile, personal incomes continue rising in Russia. According to the preliminary data of the Moscow Statistical Committee, the inflation-adjusted average income increased 29.7 percent to RUR 20,269 (about $710 according to the current exchange rate) a month in Moscow in 2003. In nominal terms, money incomes rose 46.6 percent in 2003.
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RUSSIA IN FACTS
