The volume of dollars and euros in the monetary market of the Mosbirzhi decreased by 20 times and fell to 1%

The monetary market of the Moscow Exchange practically stopped working with dollars and euros. The share of the once main foreign currencies in operations dropped below 1%, decreasing by more than 20 times. The main alternative to foreign currency was expected by Yuan, but the Chinese currency cannot yet reach the same volumes, but the absolute majority of operations are carried out in rubles. This was told by RBC by the director of the department of the monetary market of the site Sergey Titov.

According to him, at the beginning of 2022, about 80% of the positions accounted for rubles, 20% for dollars and euros, but after the start of the war, the share of foreign currency began to decline sharply. Titov noted that now it is no more than 1% of all operations in the monetary market of the Moscow Exchange. Now the share of rubles in the monetary market is 94%, about 5% falls on the yuan and about 1% - for dollars and euros. A complete abandonment of Western currencies has not yet happened, but “market participants are actively shifted,” Titov claims.

The monetary market of the Moscow Exchange should be distinguished from the foreign exchange market, on which the exchange (purchase/sales) tenders take place in different currencies. A money market is a platform for loans: some players place money in different currencies, others attract these funds at a market rate. In addition to legal entities, state bodies are also represented on the market: the Central Bank, the Treasury, the VEB and the Pension Fund.

In addition to reducing the currency positions of Western countries, a significant decrease in the volume of trading has been observed in the market since the beginning of the year. The open position of the repo (the sale of an asset with the obligation of the subsequent ransom) with the central counterparty and the clearing certificates of participation (KSU) (one of the key indicators of the cash market - The Insider) from the beginning of the year collapsed from the average 4.5 trillion to 3.7 trillion rubles, and at minimums it fell up to 3.5 trillion. However, Titov claims that the market is "gradually restored."

“If earlier participants concluded transactions for a week or month, then after the start of the war they began to make more transactions of the overnight (one -day), reducing the planning horizon. In connection with the departure of the overnight, we saw a sharp surge in the volume of trading, the transactions began to make more often, so we look at the open position to evaluate the volumes, it is more indicative from the point of view of the market evaluation, ”the director of the Moscow Buscovite Department noted.

Titov claims that in the fall the market has calmed down somewhat and the average term of transactions increased to three days. In his words, there were no structural changes in the work of the market: most of the counterparties retained their positions, and the market has lost only foreign players for whom the site is still closed by law. The share of foreigners was estimated at 8-10%, now their positions are occupied by Russian players. Also in the near future, the admission of non -residents from “friendly countries” is possible, which should increase the volume of trading and market activity in principle, Titov believes.

After the start of the war against Ukraine, Russian business and individuals began to reduce their positions in foreign currency in connection with the risks of sanctions. The peak of reduction of foreign exchange positions came at the end of spring - the beginning of summer, when Western sanctions affected the assets of Russian investors, as a result of which assets of several billion dollars were frozen in brokerage accounts. Another surge in refusal of foreign currency occurred at the end of July, when the Central Bank began to actively prepare for sanctions against the national clearing center (NKC), which could lead to a stop of exchange trading dollar and the euro.