NEGATIVE interest rates in the Eurozone have prompted European peer-to-peer investors to consider lending in other currencies, research has found.
A survey of P2P investors by Croatian P2P platform Robo.cash found that the Russian ruble takes second place behind the euro as the most-used currency.
“There are several factors stimulating European investors to look for returns in currencies other than euros,” said Robo.cash. “Since the beginning of the year the ruble has strengthened by nine per cent against the euro.”
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21 per cent of European investors in the poll said they used the ruble, compared to just 12.9 per cent who lent in British pounds. The Bulgarian lev came in with 9.7 per cent, followed by the Kazakhstani tenge and Czech koruna each with eight per cent market share.
Other popular currencies include the Mexican peso, used by 6.5 per cent of respondents, and the Polish złoty, which was used by 4.8 per cent.
Negative stimulus from the European Central Bank means bank deposits in euros are not outpacing inflation, the firm said.
“Investments in the currencies of developing countries are traditionally popular due to higher returns and while the ECB rate is set at -0.4 per cent, in Russia it equals 7.25 per cent,” Robo.cash added.
“Thus, European investors who have invested in Russian currency this year have a double benefit: direct investment income and exchange difference.”
Robo.cash said earlier this year it had hit a milestone of financing one million loans.