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Monday, March 27, 2023

Bank of Russia Eases Restrictions on Purchases of Dollar and Euro Cash

Bank of Russia Eases Restrictions on Purchases of Dollar and Euro Cash – According to the Interfax news agency, the Central Bank of the Russian Federation (CBR) has eased one of the restrictions on the selling of U.S. dollars and euros in cash to private people imposed in response to Western sanctions over the conflict in Ukraine.

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Russians could previously only purchase dollars and euros that were sold to banks at their cash desks on or after April 9, 2022, by other actual people. Now since they can also be acquired from other sources, the two convertible currencies may be sold by Russian lenders, according to the CBR.

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The regulator clarified that these might incorporate cash deposits made abroad by Russian legal entities as well as transactions with non-resident banks. According to its press service, the change will allow banks to increase the amount of cash they are dispensing in dollars and euros.

However, as was previously announced, other restrictive measures will continue to be in effect until March 9, 2023. The Bank of Russia placed a six-month extension on its ban on cash withdrawals in dollars and euros in August. The study explores that Russian banks are no longer constrained in their ability to sell other international fiat currencies.

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After Moscow decided to invade Ukraine in late February, the West imposed severe economic and financial sanctions. They have restricted Russia’s access to the international financial system and its foreign exchange reserves.

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The CBR’s currency restrictions caused a surge in interest in cryptocurrencies. Numerous Russians have started purchasing bitcoin, other cryptocurrencies, and stablecoins in order to use them, among other things, for international money transactions. 

It is unclear how their current loosening would impact the local cryptocurrency industry. According to a recent survey, about a third of Russians are prepared to purchase coins in the next six months.

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