© Reuters. FILE PHOTO: A view shows the Sberbank logo at the Saint Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia on June 15, 2022. REUTERS/Anton Vaganov/File Photo
MOSCOW (Reuters) – Russia’s dominant bank said on Wednesday that individuals can now open accounts in Indian rupees, widening the range of foreign currencies available as Moscow seeks to reduce dependence on the dollar and euro.
“As explained by Sberbank, the bank supports the trend of de-dollarization and is constantly increasing the number of foreign currencies available to customers,” Sberbank said in a statement.
Sberbank has more than 100 million retail customers and already offers deposits in Chinese Yuan and UAE Dirhams. It said rupee accounts will be available from Wednesday.
In a separate statement, Sberbank said it would raise interest rates on dirham deposits by 100 basis points for a period of six weeks, starting Wednesday.
The bank’s chief financial officer said earlier that Sberbank will issue bonds this year if the opportunity arises and will continue to borrow in rubles to drive portfolio growth.
Rival VTB said on Wednesday that yuan savings will account for about a quarter of Russia’s total foreign exchange portfolio by the end of 2023, rise to 45% in 2024 and account for two-thirds in 2025.
“It is the Chinese currency that today serves as the main, in fact, alternative to the outgoing dollars and euros and forces banks to compete more actively for customers,” said Vice President and Chairman of the Board of Directors of VTB Anatoly Pechatnikov.
“Other soft currencies are still only looking for their clients in Russia, as specialized offerings,” he added.
