Central Bank of Russia Expands Cash Currency Sales to Citizens
Following April 9, the Central Bank of Russia permitted the sale of dollars and euros to citizens from a broader set of sources. This policy change, confirmed by a letter the regulator sent to banks and reported by Frank Media, marks a shift in how foreign currency can be obtained by residents. The new rule is effective from the start of the current week and will remain in force until September 9, creating a defined window for cash foreign exchange operations.
Officials from the Central Bank confirmed the information’s accuracy. A spokesperson clarified that the broadened access to currency sales applies to funds that banks already hold, including cash stored in vaults, when foreign currency loans are issued to companies with non-resident status or for other legitimate business reasons. The expansion focuses on inflows that arise from standard banking transactions rather than other channels, ensuring that funds meet the regulator’s risk and source criteria.
Despite the widening of permissible cash sales, the policy retains a prohibition. Specifically, money that originates from non-cash foreign currency operations or non-cash rubles used in the purchase or sale of currency notes remains blocked from cash sale to individuals. This separation helps the central bank control liquidity and monitor currency flows while supporting ordinary financial activity that complies with existing rules.
In discussing broader currency controls, it is noted that the central bank began tightening oversight of cash circulation earlier in March. This step reflects the impact of Western sanctions on the domestic financial system. The regulator has set a clear deadline of September 9 for the new cash sale arrangements, emphasizing that only currency that entered into the banks’ vaults after April 9 is eligible for cash purchase by residents.
Looking back, the bank’s communications from July highlighted a strong demand for foreign currency among residents. Data published by the Moscow Exchange showed that individuals spent a record 237.1 billion rubles on foreign currency purchases. This figure underscores the scale of cash transactions and the importance of regulatory supervision to ensure stability and transparency in the market. Market participants and observers will be watching how the September 9 deadline interacts with bank liquidity, consumer behavior, and the broader economic environment, including how non-resident business interests and sanctions influence demand for dollars and euros inside Russia. It is expected that banks will continue to report on inflows and outflows, and the central bank will assess the effectiveness of these measures as part of ongoing monetary oversight. [citation]