The Central Bank of Russia announced an extension of a policy that prevents banks from charging commissions when issuing cash foreign currency to individuals. The extension lasts until September 9, 2023, according to the bank’s press service. This decision affects how credit institutions handle currency issuance for customers and aims to keep costs predictable for people dealing with foreign currency. The notice clarifies that the restriction applies to the cash foreign currency issued up to the balance available in an individual’s foreign currency deposits or accounts as of March 9, 2022 Moscow time, as reported by the bank’s press service. In short, customers will not see extra fees simply for withdrawing foreign cash up to their existing balance on that date. (Central Bank press service)
The policy goes further. Banks will not be allowed to levy commissions for converting foreign currency into United States dollars or euros when issuing foreign currency from any foreign currency deposits or accounts held by citizens. This means that, for the duration of the extension, conversion fees tied to issuing foreign cash are prohibited, aligning with wider efforts to simplify access to foreign currency for residents receiving cash. (Central Bank press service)
Elvira Nabiullina, who previously led the Central Bank of Russia, stated that in March the currency restrictions for individuals would be extended, and she indicated that the probability of a key rate increase later in the year would be higher than the chance of a reduction. The remarks reflect a cautious approach from the central bank toward domestic currency policy amid evolving market conditions and external pressures. (Central Bank press service)