$10 billion in foreign currency withdrawn from Russian banks in March alone

15 April, 04:10 PM
Russians withdrew almost $10 billion’s worth of foreign currency from banks (Photo:NBU\Flickr)

Russians withdrew almost $10 billion’s worth of foreign currency from banks (Photo:NBU\Flickr)

In March, Russians withdrew almost $10 billion in foreign currency from banks amid restrictions from Russia's central bank, reports Russian business news outlet RBK on April 14. The outflow was particularly strong at the beginning of the month.

In March 2022, the Russian citizens withdrew $9.8 billion from foreign currency accounts; the outflow lasted for the second month in a row and could be even greater than in February, the Russian outlet RBC writes, citing data from the Central Bank of the Russian Federation.

Last month, the Russians continued to withdraw currency from savings and current accounts following the recently introduced restrictions by the central bank. At the same time, the largest outflow of currency from accounts and savings was observed in the first 10 days of the month and stopped in the last week of March.

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The outflow of funds from foreign currency accounts and deposits lasted for the second month in a row and could be even more substantial than in February.

The dynamics of foreign exchange balances was influenced by the introduction of restrictions on the part of the Russian central bank. On March 9,the regulator banned loan institutions from handing out any foreign currency to individuals, except for dollars, for the period of six months and introduced a withdrawal limit of $10,000 equivalent.

Only those customers who opened an account or a fixed-period deposit before March 9 could withdraw foreign currency. At the same time, new deposits or funds above the limit can be withdrawn only in rubles.

From April 11, the Central Bank allowed banks to give out euros within the limits, and from April 18, customers will be able to buy foreign cash in branches.

At the same time, the Russians returned rubles to bank accounts due to increased rates.

Earlier, it was reported that the net outflow of capital from Russia in the first quarter of 2022 accelerated to $64.2 billion, compared to $17.5 billion for the same period last year.

In February, the Russians took a record 1.2 trillion rubles (about $15 billion) out of banks, which was the most significant outflow of deposits since2008.

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