According to the regulator’s website, the Central Bank has extended restrictions on withdrawals from foreign currency accounts for another six months. All existing restrictions on the issuance of foreign cash to citizens and legal entities remain.
“If a foreign currency account or deposit was opened before March 9, 2022, a person who has not yet taken advantage of this opportunity, at 00. 10,000 dollars or equivalent euros of the specified date,” the Central Bank reminds.
Funds remaining in the account after the withdrawal can be received in rubles at the bank’s exchange rate.
The same applies to receiving foreign currency transfers – they will continue to be issued in rubles.
The Central Bank expanded the existing regime in connection with the economic sanctions against the Russian Federation after the start of special operations in Ukraine.
“The Bank of Russia maintains restrictions on cash currency in connection with the sanctions in force against our country, which prohibit local financial institutions from receiving cash from Western countries,” the Central Bank website states.
The regulator also extended the ban on banks collecting commissions when issuing foreign currency until September 9.
The extension of restrictions was known in advance – the measure was announced by the head of the Central Bank, Elvira Nabiullina, on February 16, on the sidelines of the Ural forum “Cybersecurity in Finance”.
“We don’t see the possibility of some kind of systemic liberalization of currency restrictions,” he said at the time.
According to him, the expansion of restrictions is important for the financial stability of the Russian Federation.
The Bank of Russia last extended withdrawal restrictions from September 9 to March 9 in August.
Nabiullina later noted that there are no plans to ban the circulation of dollars and euros in Russia and that they will continue to be circulated in Russia “even in a doomsday scenario”.
Foreign demand and output
From February 2022, Russians began to actively receive dollars and euros from banks. According to the Central Bank, since the beginning of 2022, individuals bought ₽230.1 billion dollars and euros on the stock exchange and over-the-counter markets, while net foreign exchange sales took place from February 24 to April 10. 539.9 billion rubles.
From September 20 to October 13, the total net foreign exchange sales volume by population amounted to ₽65 billion.
According to the Central Bank and accordingly calculations RBC, in June 2022, the Russians deposited 266.1 billion rubles into the accounts and deposits of foreign banks. (with an average exchange rate of 57.2 rubles per dollar). In dollar terms, this is $4.7 billion, a record amount since 2018, when the Central Bank began publishing such statistics. As of July 1, Russian households held 2.29 trillion rubles in foreign banks, or $44.7 billion, taking into account the exchange rate at the reporting date.
sanctions
On March 2, 2022, the European Union banned the sale and delivery of euro banknotes to Russia in connection with the special operation launched by the Russian Armed Forces in Ukraine. Thus, the EU prohibited the sale, supply, transfer or export of euro-denominated banknotes to Russia or any natural or legal person, organization or institution in Russia, including the Russian government and the Central Bank of Russia, or for use in Russia. Federation. The ban did not apply to the personal use of tourists or the use of diplomatic missions.
On March 9, against the backdrop of high public demand for cash and the tightening of Western sanctions, the Central Bank introduced existing restrictions and limits. On March 10, this order was extended to businesses.
Then on March 11, US President Joe Biden signed a decree banning the export, re-export, sale and supply of dollar bills to Russia.
On April 11, the Central Bank allowed Russians to withdraw cash in euros, but this only concerned citizens who had open foreign currency accounts or deposits before March 9, 2022 and had not yet chosen the set limit for receiving cash from their accounts. .
On April 18, the Central Bank allowed banks to sell cash to citizens. However, they announced that as of April 9, 2022, banks will only be able to sell the currency in their vaults.