The Central Bank does not plan to ease restrictions on the purchase of cash currency until September

The Central Bank has no plans to ease restrictions on the purchase of cash currency by individuals, said at a press conference Ksenia Yudaeva, First Deputy Chairman of the Bank of Russia, . “I think we’ll wait until September and look at the situation. Nothing new yet,” she said.

In early March, the Central Bank banned banks from selling cash to citizens. No more than $10,000 could be withdrawn from foreign currency deposits opened before March 9, and the rest of the funds could be received in rubles at the market rate on the day of issue. In early April, the regulator eased the restrictions: from April 18, banks again began to sell cash currency, but only the one that came to the cash desks starting from April 9. And it became possible to withdraw not only dollars, but also euros from foreign currency deposits. The total limit has been preserved - $10,000 or its equivalent in euros.

Central Bank on oil embargo

Yudaeva at a press conference answered The Bell's question about the EU embargo on 90% of Russian oil. This is the first official reaction of the regulator to the sixth European sanctions package. According to Yudaeva, the Central Bank still considers its current forecast for a decline in exports to be relevant.

Julia Starostina The Bell correspondent “The European Commission agreed on the parameters of the oil embargo last night. In your opinion, what effect will this have on the Russian economy? What financial stability risks do you see in connection with the announced parameters of the oil embargo?”

Ksenia Yudaeva Deputy Chairman of the Central Bank “The announcement [of the embargo] was made only today, but the discussion has been going on for quite some time. When we were developing the forecast for the previous rate decision, discussions had already begun. And we have included in our forecasts a rather conservative trajectory of what will happen to exports. We have assumed that exports will drop significantly. Therefore, we believe that the forecast remains relevant in terms of assessing the situation in the economy and in the new conditions.”

According to the baseline scenario of the Central Bank, the reduction in exports of goods and services in real terms can reach 17–21% in 2022, both due to the oil and gas and non-oil and gas sectors. In 2023, exports will continue to decline (by 4–8%), but by the end of the forecast horizon, as trade flows are reoriented, the decline will stop and a slight increase is possible (by 1% in 2024). In value terms, the volume of exports this year may decrease by 8% - the reduction in physical volumes will be largely offset by rising prices.

We talked about the parameters of the oil embargo in today's morning newsletter .

What else did Yudaeva say:

• the use of cryptocurrencies within Russia carries risks, but the Central Bank is not against their use in the international infrastructure;
• the economy needs to rebuild, look for new logistics chains for replenishment of stocks, new suppliers;
• The Central Bank is considering the possibility of introducing negative rates on foreign currency deposits for legal entities, this will not affect individuals yet;
• specific proposals for additional capitalization of banks will be closer to the end of the year.