Currency restrictions will extend in Russia

The Central Bank will extend the validity of the currency restrictions introduced in Russia in March after the outbreak of war in Ukraine. This was stated by the head of the Bank of Russia Elvira Nabiullina. According to her, there is no reason to expect an improvement in the situation with the import of currency into the country.

The restrictions were introduced for a period until September 9 after the countries of the West froze the currency reserves of the Bank of Russia, and also banned the import of cash, euros and pounds into the country. The withdrawal of funds from the foreign exchange accounts of Russian citizens was limited to the amount of 10 thousand dollars, and the export of cash currency abroad was limited the same amount. A limit was also introduced to foreign exchange transfers in Russian banks abroad (it was subsequently softened, now it is 150 thousand dollars) and a number of other measures.

At the same time, according to Nabiullina , “even in the apocalyptic scenario” in Russia, the circulation of cash US dollars will not stop, since the population, according to estimates, is at least $ 85 billion. The head of the Central Bank emphasized that banks (taking into account restrictions) will continue to sell and buy currency.

The Bank of Russia on July 22 for the fifth time in a row lowered the key rate, and immediately 1.5 percent, from 9.5% to 8% per annum. The regulator noted that inflation in the country slows down, and the main task now is to stimulate business activity. The new rate is lower than the rate before the invasion of Ukraine. At the same time, immediately after the invasion, the Central Bank raised it to 20 percent.

The ruble exchange rate to the dollar is now also higher than before the invasion - at the auction of the Moscow Exchange, it is now about 58 rubles. Cash currency, however, is almost impossible to buy at such a course.