- The Central Bank of the Russian Federation (CBR) has eased one of the limitations on selling US dollars and euros in cash to private people.
- Russians could only purchase dollars and euros sold to banks after April 9.
- The CBR’s currency limitations caused a surge in interest in cryptocurrencies, with numerous Russians buying bitcoin for international transactions.
According to Reuters, the Central Bank of the Russian Federation (CBR) has eased one of the limitations on selling US dollars and euros in cash to private people. The lately relaxed restriction was earlier imposed by the government in response to Western sanctions over the conflict in Ukraine last March.
Russians could previously only purchase dollars and euros sold to banks at their cash counters on or after April 9, 2022, by other people. The CBR now permits Russian lenders to offer the two currencies for sale even if they came from other sources, according to a report yesterday, citing a letter sent by the central bank to credit institutions.
This is an additional tweak to the measures already in place, which allow for the increased supply of cash dollars and euros on the Russian market.
The adjustment indicates a loosening of capital controls, easing Russian family worries about the availability of foreign money.
The regulator also clarified that it includes cash deposits made abroad by Russian legal entities and transactions with non-resident banks. However, as was previously announced, the Bank of Russia imposed further six-month limitations on cash withdrawals of dollars and euros.
After Moscow invaded Ukraine in late February, the West imposed severe economic and financial sanctions, restricting Russia’s access to the international financial system and foreign exchange reserves.
The CBR’s currency limitations caused a surge in interest in cryptocurrencies. Numerous Russians have started purchasing bitcoin, other cryptocurrencies, and stablecoins to utilize them for international money transactions. According to a recent survey, about a third of Russians are ready to purchase coins in the upcoming six months.