Shifts in Cash in Circulation in the Russian Federation Through November
Recent data from the Bank of Russia show a notable reduction in the amount of cash circulating in the country during November, with a drop of 318.2 billion rubles. This marks the sharpest month over month decrease observed since May of the previous year, signaling a turning point in the long running trend of cash usage and substitution with digital payments. The movement away from cash reflects broader patterns in consumer behavior and financial policy that have been unfolding over the past year.
In addition to November’s decline, cash availability has contracted for a third consecutive month. October posted a decrease of 150.7 billion rubles, while September experienced a smaller slide of 21.6 billion rubles. Taken together, these figures illustrate a sustained contraction in physical currency in everyday transactions, even as other liquidity channels remain robust across the financial system.
Looking further back, January 2023 also saw a drawdown in cash held by households, with the volume of funds kept outside formal channels decreasing by 214.5 billion rubles. This pattern tends to recur around the start of the calendar year, as households adjust to new budgeting cycles and shifting incentives in the monetary landscape.
The latest sequence of reductions suggests more than a seasonal correction. The last time the central bank identified a genuine off season decline in cash circulation, independent of January holidays, was during the spring of the previous year. That period featured a rise in individuals making deposits and strengthening bank balances, a trend that coincided with an environment of a comparatively higher key rate set by the Bank of Russia. The interplay between cash holdings and deposit growth has remained a recurring theme in recent monetary conditions.
On the whole, the monetary aggregates indicate that cash in circulation in Russia for the year 2022 increased by a substantial 2.24 trillion rubles, underscoring how the dynamic between cash usage and digital financial services evolved over that period. The latest data update also aligns with expectations that cash stock could edge down further if households continue to migrate toward electronic payments and if merchants and financial institutions push for cashless transaction options. The Bank of Russia has emphasized ongoing modernization of the payments infrastructure, which supports a gradual shift away from cash in the economy while preserving access to cash for those who rely on it for various reasons.
In October 2023 there were reports of a noticeable drop in cash in circulation, with the data showing a fall of 150.7 billion rubles. This reinforces the notion that the trend toward reduced cash holdings is not an isolated event but part of a broader adjustment across multiple months. The composition of household deposits and the growing prominence of bank accounts and digital wallets contribute to this evolving picture, reflecting changing consumer preferences and policy directions aimed at enhancing transaction efficiency and financial inclusion.
For context, the private sector in Russia has continued to expand its base of traditional and digital deposits. The aggregate held in deposits and bank accounts rose to levels that illustrate strong public engagement with formal financial institutions. This shift supports a more liquid and traceable monetary system, even as cash remains an important instrument for many individuals and small businesses. As cash usage contracts, observers watch for the implications on money velocity, consumer spending, and the broader macroeconomic outlook.
Attribution: Bank of Russia data. This synthesis reflects the central bank’s monthly updates on currency in circulation and related monetary aggregates. The figures discussed here are part of ongoing transparency around how households and the financial sector adapt to policy settings and evolving payment technologies.