The Central Bank of Russia has extended restrictions on charging commissions on foreign currency operations for another six months, keeping the ban in place through March 9, 2023. This renewal covers fees charged to individuals when handling funds tied to deposits and accounts, reinforcing limits that banks must observe during this period.
The central bank’s board reaffirmed the prohibition on banks levying commissions when customers initiate cash transactions from deposits or accounts until March 9, 2023. The measure includes a broader assertion that banks should avoid charging for processing these cash-related services, aligning with supervisory expectations for consumer-friendly banking practices in the current environment.
Additionally, from now until March 9, there will be a ban on commissions for converting foreign currencies into U.S. dollars and euros if those conversions are intended for subsequent issuance of funds. This rule aims to preserve the effective value of currency exchanges when funds are reissued by banks to customers.
On March 11, the Central Bank prohibited banks from taking commissions when individuals withdraw foreign currency from their accounts. Banks are also required to reimburse customers for any commissions collected when printing cash, with the restitution obligation effective as of March 9.
at bank rate
The regulator clarified that banks will continue to issue cash in rubles from foreign currency accounts and deposits credited since September 9, with the issued amount not falling below the official central bank rate. In other words, cash withdrawals or conversions linked to foreign currency will be subject to the bank’s rate, but the total issued must reflect or exceed the central bank’s published rate on the relevant day.
According to the regulator, currency crediting to accounts from March 9 to September 9, 2022 remains payable in rubles at the bank’s rate, though the total amount must not be less than the central bank’s official rate on that date. This provision ensures that payment calculations stay aligned with official benchmarks while deliveries of currency occur. The policy also notes that withdrawals remain subject to the existing limit of $10,000 (or its euro equivalent) from foreign currency deposits opened before March 9, and that foreign currency issuance continues in U.S. dollars or euros, regardless of the deposit currency.
The central bank has extended its prohibition on citizens purchasing foreign currency in Russia through March 9 of the following year. After April 9, 2022, credit institutions are allowed to sell only euros and U.S. dollars from their vaults, further shaping liquidity management and currency access for residents and businesses.
Currency debts in rubles
Russian President Vladimir Putin signed a decree allowing sanctioned banks to fulfill their foreign currency obligations in rubles. Liabilities under bank account or deposit agreements with foreign clients and entities are considered satisfied when settled in rubles at an amount equivalent to the foreign currency liability. This adjustment reflects the ongoing evolution of how cross-border financial obligations are treated amid sanctions and market shifts.
Unreliable currencies and inflation
Speaking at the Eastern Economic Forum, President Putin described major international currencies as unreliable and self-compromising, arguing that confidence in the dollar, euro, and pound had weakened. He cited Gazprom and its Chinese partners choosing to pay for gas in a 50-50 mix of rubles and yuan as an example of shifting payment practices in response to global liquidity dynamics.
Putin criticized Western policy decisions as fueling global inflation, pointing to higher inflation readings in the United States and contrasting them with Russia’s inflation trajectory. He cited country-specific inflation levels and suggested that Russia may see inflation trending around a lower path relative to some Western economies, highlighting a broader debate about currency resilience and economic sovereignty during periods of sanctions and currency volatility.