OREANDA-NEWS. April 18, 2012. Funds raised by NOMOS-BANK in exotic currencies totaled RUB 755.38 million at the end of February 2012. The funds are in the form of deposits held by private banking customers and promissory notes issued for corporate customers. This is up five times since October 2011, when strong demand for these products first appeared, reported the press-centre of NOMOS Bank.

“Interest in alternative instruments was to be expected given instability on currency markets, when traditional currencies – the euro and dollar – have been subject to intense volatility,” said Roman Pivkov, Senior Vice-President of NOMOS-BANK. “We had foreseen growth of demand from customers and therefore expanded our range of currency instruments and offered attractive terms for our products, enabling our customers to invest in exotic currencies.”

All attendant expenses have been minimized, including currency conversion expenses, and customers can carry out settlement in roubles when buying promissory notes, so they do not have to open settlement accounts in exotic currencies.

Deposits in Australian dollars have proved most popular among private banking customers. Total value of these deposits has increased to RUB 420 million.

“The interest rate on deposits in Australian dollars is the highest among exotic currencies at 8% per annum. That reflects the lending rate of the Australian Central Bank, which is the highest in any developed country,” said Alina Bisembaeva, who is Vice-President of NOMOS-BANK in charge of Private Banking. Popularity of the Australian dollar is also explained by various macroeconomic factors: The highest sovereign credit rating (AAA), sustained economic growth, low levels of government debt, and modest rates of inflation.

The second and third most popular choices are the Chinese yuan and UK pound sterling, total investments in which reached RUB 154.64 million and RUB 73.59 million, respectively. Interest of high net-worth customers in both instruments is explained by their relative stability. There has also been demand for Swiss francs, which have attracted RUB 40 million, and a recent NOMOS-BANK product which enables customers to invest in the Czech koruna has been well received (RUB 40 million have been invested since introduction on March 5).

Investments in exotic currencies can be made via a NOMOS-PRESTIGE deposit. The product has been specially designed for private banking customers of NOMOS-BANK.

Investments by customers in NOMOS-BANK promissory notes denominated in exotic currencies were in excess of RUB 65 million by the end of February 2012. The Bank’s promissory note programme offers investment opportunities to customers beyond the traditional range of rouble, US dollar and euro notes, including promissory notes in Japanese yen, South African rand, Norwegian krones, Swiss francs, Canadian dollars, Australian dollars, UK pounds sterling, New Zealand dollars, Singapore dollars and Chinese yuan. The NOMOS-BANK promissory note programme of allows corporate customers to diversify their investment portfolio by use of instruments that offer a steady rate of return and to protect their investments from currency risk.