The Bank of Russia introduces temporary restrictions for operations with cash currency, the regulator said.
“The Bank of Russia from March 9 to September 9, 2022 establishes the following procedure for the issue of funds 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 day of issue,” the Bank of Russia explains.
During the period of temporary restrictions, the currency will be issued in US dollars, regardless of the currency of the account. Other currencies will be converted into dollars at the market rate on the day of issue. The Central Bank notes that it will be possible to get the currency at the bank’s cash desk.
Citizens can continue to keep funds in foreign currency deposits or accounts.
“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,” the regulator notes.
Citizens will be able to open new foreign currency accounts and deposits. But while the temporary restrictions for operations with cash currency are effective, it will be possible to withdraw funds from these accounts in rubles at the market rate on the day of issue.
Banks will not sell currency cash to citizens during the period of temporary restrictions. Citizens will be able to exchange cash currency for rubles at any time and in any amount.
“Clients of all banks, without exception, can receive funds from their foreign currency deposits or accounts. It may take several days for banks to bring the required amount in cash to a specific branch,” the Central Bank points out.
According to the regulator, about 90% of foreign currency accounts in Russian banks do not exceed the amount of $10,000. That means that 90% of holders of foreign currency deposits or accounts will be able to fully receive their funds in cash.
