The Central Bank recently recorded an increased demand for cash in Russia, which was created by the economies of new regions, such as the DPR, LPR, Zaporozhye and Kherson regions, where the hryvnia ceased to be used in 2023. In this respect informs With reference to Alexei Zabotkin, Deputy Governor of the Bank of Russia, RIA Novosti.
According to the Central Bank, the volume of cash in circulation increased by 3% in April, reaching a record level of 17,154 trillion rubles.
“In our opinion, this is due to the active use of cash in new regions of the Russian Federation, where non-cash payments are noticeably less common for obvious reasons. Since January 1, the cash hryvnia stopped circulation there, all cash payments were transferred to cash rubles, ”sabotkin said.
That is, he believes that the new regions’ demand for rubles for cash is apparently reflected in this increased demand for cash in the Russian economy as a whole.
On September 30, 2022, President Vladimir Putin signed agreements on the entry into Russia of the DPR, LPR, Zaporozhye and Kherson regions. According to him, the inhabitants of these regions became citizens of Russia forever. Referendums for the integration of the regions into the Russian Federation were held on September 23-27. In fact, its residents voted 100% to join Russia.