Central bank of Russia limits cash withdrawal in foreign currencies
Moscow (Russia), March 9: The Central Bank of Russia (CBR) on Wednesday announced that it has imposed a temporary restriction on the withdrawal of cash in foreign currencies, reported a local media.
CBR in a statement said that it is imposing a USD 10,000 limit on foreign cash withdrawals from foreign currency accounts by clients until September 9 and added that customers who want to withdraw more can take the balance in rubles, according to Sputnik.
"From March 9 to September 9, 2022, the Bank of Russia establishes the following procedure for cash withdrawal from foreign currency deposits or accounts of citizens: all customer funds on foreign currency accounts or deposits are saved and accounted for in the deposit currency, the client can withdraw up to $10,000 in cash, and the rest of the funds - in rubles at the market rate on the withdrawal day," read the statement issued on Wednesday.
The Central Bank further stated that currency will be issued in US dollars under the temporary limits, regardless of the currency kept in the account. According to TASS, other currencies would be converted into dollars at the market rate on the day of the issue.
"All funds are saved and accounted for in the currency in which the account or deposit was opened. The conditions for the deposit or account do not change. Interest on deposits will be calculated as usual, in the currency in which the deposit was opened," it added.
The new measures, according to the Central Bank, are unlikely to affect the majority of Russians who have a foreign currency account because most accounts do not surpass USD 10,000.
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The CBR further said, "In Russian banks, about 90 per cent of foreign currency accounts do not exceed the amount of $10,000, that is, 90 per cent of holders of foreign currency deposits or accounts will be able to fully receive their funds in cash."
It added that banks will not sell foreign cash to citizens while the new regulations are in effect and that the special measures were imposed as a result of Western nations' restrictions on dollar inflows to Russia.
Following Russia's invasion of Ukraine, the United States and its European allies imposed sanctions on several major Russian banks and high-ranking Russian officials, including President Vladimir Putin, as well as banning Russia's participation in the SWIFT financial system.
Financial sanctions and travel bans have been imposed on Russia by a number of countries, including Japan, South Kore, and Australia. They're considering fresh targeted sanctions against Russia's most powerful political and military figures, including asset freezes and travel restrictions.
Meanwhile, Biden announced a ban on US imports of Russian energy earlier Tuesday in an effort to ramp up sanctions against Russia for invading Ukraine.
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-PTC News
