Currency Panic: Demand for the Dollar in russia Has Surged 12-Fold

The second quarter of 2026 revealed just how fragile financial confidence remains within putin’s economy. Despite years of rhetoric about giving up “unfriendly” currencies, russians rushed to buy up dollars and euros with an intensity reminiscent of a panic reaction to an obvious threat.

In May, the number of requests for currency exchange transactions rose by 365% compared to April, and compared to January, this figure had already increased 12-fold. By the end of the quarter, demand for foreign currency was nearly three times higher than at the start of the year – russia’s population does not believe in the ruble’s stability.

Against the background of sanctions and years of attempts to oust the dollar from domestic circulation, the US currency remains the primary choice for russians. It accounted for 68% of all requests. The euro received 22%, while the yuan – which moscow’s propaganda has been promoting for years as a viable alternative to Western currencies – accounted for only 7%. This is a clear signal to the kremlin: the push to “yuanize” the financial system has failed even at the level of citizens’ everyday behavior.

The structure of the transactions themselves has also changed. At the beginning of the year, nearly 59% of transactions involved amounts exceeding 1 million rubles, or approximately $13,050, meaning that currency was purchased primarily by wealthier clients. In the second quarter, the picture was different: over 90% of requests involved amounts up to 100 thousand rubles, or about 1.3 thousand dollars. This means that ordinary russians with much more modest incomes have joined the foreign exchange market, not just large private capital.

In parallel, bank deposits are losing their appeal. Demand for online deposits fell by 13% compared to the previous quarter and nearly halved compared to the same period in 2025. The reason is simple: deposit yields are falling, and keeping money in rubles is becoming simply risky.

Together, these trends paint a bleak picture for the kremlin. For years, the authorities have tried to convince the public that the dollar is losing its significance and that the yuan is capable of taking its place as a reserve currency. The actual behavior of millions of russians refutes this narrative. When given a choice, people are not fleeing to the yuan but to the dollar – that is, precisely the currency from which the kremlin is officially trying to distance itself.