The strengthening of the Russian rouble is proving costly not only for the Russian state budget, which is losing oil revenue, but also for the country’s banks.

Source:The Moscow Times, an independent Amsterdam-based news outlet, citing data from the Central Bank of Russia

Details:In the first quarter of 2025, Russian banks recorded a total loss of RUB 149 billion (approx. US$1,8 billion) from currency revaluation due to the rouble’s appreciation.

Over the course of three months, the rouble strengthened by 21.5%, leading to a negative revaluation of banks’ foreign currency assets amounting to RUB 2 trillion (US$25 billion).

While currency liabilities also decreased as exchange rates fell, the reduction was smaller. The resulting gap in the open currency position (the difference between foreign currency assets and liabilities) narrowed to US$1.1 billion for the quarter.

Background: By the end of May 2025, the Russian rouble’s exchange rate had risen significantly, surpassing RUB 78 per US dollar, marking a two-year high.

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