Until March 9, 2023: The Bank of Russia extended restrictions on the withdrawal of foreign cash

The Central Bank of Russia has decided to extend the current restrictions on foreign currency cash withdrawals until March 9, 2023.

This was announced on Monday, August 1, by the press service of the Central Bank.

“There is a limit of $10,000 or the same amount in euros for withdrawing cash foreign currency from a foreign currency account or deposit... Restrictions on the purchase of foreign currency remain in effect: banks can sell to citizens only euros and US dollars received in their cash desks after 9 April 2022.

There are no restrictions on the sale of other foreign currencies.

At the same time, until March 9, 2023, the regulator extended restrictions for Russian legal entities on receiving cash for travel expenses.

For these purposes, a business can be issued dollars, euros, pounds sterling or Japanese yen in the equivalent of not more than $5,000. These requirements do not apply to other currencies.

At the same time, the Central Bank reminded that the issuance of cash in dollars, euros, pounds sterling and Japanese yen to non-resident legal entities is not carried out.

There are also no restrictions for other currencies.

“The Bank of Russia is forced to maintain these and other restrictions on cash in connection with the sanctions in force against Russia, which prohibit Russian financial institutions from acquiring cash in Western countries,” the Central Bank explained.

As Elvira Nabiullina, chairman of the Central Bank, noted earlier, at the moment the supply of foreign currency in cash in Russia is limited.

At the same time, the situation with the receipt of new paper banknotes in the country is unlikely to change for the better in the near future, so the regulator is forced to extend the restrictions, the head of the Central Bank said.

“There is that cash currency that is already in circulation.

There is cash in banks, which is designed so that people can withdraw cash (from deposits. -

) within the allowed limit ... Our banks should be able to ensure for all citizens their rights to previously opened currency accounts, ”Nabiullina emphasized .

• © Maksim Konstantinov/Global Look Press

Recall that in early March 2022, against the backdrop of large-scale anti-Russian sanctions by the West, the Central Bank introduced a temporary procedure for the circulation of cash currency in the country.

In particular, the Central Bank set a limit on the withdrawal of dollars and euros from accounts.

Now clients can receive foreign currency from deposits only with the equivalent of no more than $10,000, and the rest of the funds in rubles.

It is noteworthy that the established limit covers 90% of all foreign currency deposits.

That is, the majority of Russians today have the opportunity to completely withdraw their savings in foreign currency from deposits, however, according to Elvira Nabiullina, few are in a hurry to do this.

Also in March, the regulator temporarily banned Russians from buying foreign banknotes at bank cash desks, but this restriction was lifted in April as the situation in the financial sector began to stabilize.

At the same time, credit organizations can now sell to the public only the currency that has been received by them since April 9.

“The restrictions were a necessary measure, because against the backdrop of increased market volatility, citizens rushed to massively withdraw money from their accounts and buy foreign currency.

To stabilize the situation in the foreign exchange market and in the financial system, the Central Bank took such a step, ”Vladislav Antonov, financial analyst at BitRiver, explained to RT.

Initially, it was assumed that the temporary procedure for the circulation of cash currency would last until September 9.

Although there is no longer any panic in the Russian money market, most of the sanctions imposed by the West against Moscow are still in place, so the regulator may again extend the restrictions in the future.

Alexander Razuvaev, a member of the Supervisory Board of the Guild of Financial Analysts and Risk Managers, shared this assumption with RT.

“The Central Bank is acting absolutely correctly in the current situation.

Not a single bank collapsed during the crisis, so the restrictions were absolutely justified.

Most likely, they will remain in effect until the West unfreezes our assets or lifts the ban on the import of banknotes.

In addition, the Central Bank may ease restrictions if sanctions are lifted from our key banks,” Razuvaev did not rule out.

In addition, the extension of restrictions on the withdrawal of cash currency may be associated with the restoration of imports, said Artyom Deev, head of the analytical department at AMarkets.

To date, the supply of foreign goods to Russia has begun to grow again after a sharp collapse in the spring.

Under these conditions, the authorities want to fully provide businesses and various industries with foreign currency in order to be able to buy foreign products, the expert emphasized.