The Central Bank of Russia reports a historic milestone with 17 trillion rubles in cash circulating at the start of May, a peak noted by DEA News as the highest level ever recorded. The measurement marks a significant moment for the country’s monetary supply and reflects ongoing trends in cash usage within the Russian economy. According to the central bank, the May figure rose 3% from the level at the start of April, pushing past 17.154 trillion rubles. This development follows a period in which cash in circulation showed rapid expansion, reminding observers of the rapid growth recorded in September 2022 when cash in circulation surged sharply to 15.158 trillion rubles and continued to trend upward by roughly 5%.
Over the course of the last year, the expansion of cash in circulation in Russia reached about 20%. This pace highlights a sustained increase in liquidity and a preference for cash holdings among certain sectors, even as the economy navigates broader financial dynamics and policy considerations. The central bank’s latest data emphasizes the resilience of cash as a component of liquidity within the country’s monetary system and signals how consumers and businesses may respond to shifts in interest rates, inflation expectations, and regulatory guidance.
Separately, the National Welfare Fund (NWF) showed liquidity indicators consistent with cautious fiscal planning. At the beginning of May, the fund held around 12.47 trillion rubles in total funds, a figure that corresponds to roughly 8.3% of Russia’s forecasted gross domestic product (GDP) for 2023. These funds are managed to support long-term stability and macroeconomic resilience, reflecting the government’s approach to saving and spending in an environment of volatile external conditions.
As of May 1, the liquid assets within the National Welfare Fund stood at approximately 6.82 trillion rubles. This component of the NWF reflects the fund’s capacity to meet short-term liquidity needs and to respond to potential shocks or opportunities that could arise in the domestic economy. The ongoing measurement of both total fund size and liquid assets provides investors, policymakers, and observers with a view into how Russia balances savings with the need for available liquidity as it pursues its economic objectives.