The Central Bank of Russia has eased some restrictions for Russian banks selling US dollars and euros to the public. The increased supply of foreign cash may affect the crypto market in the country, as currency restrictions have been a driver for the increase in demand for digital coins.
The Monetary Authority of Russia expands citizens’ access to foreign cash
The Central Bank of the Russian Federation (CBR) has lifted one of the restrictions on the sale of US dollars and euros in cash to individuals imposed as part of Western sanctions over the war in Ukraine, reports the Interfax news agency.
Until recently, Russians could only buy dollars and euros sold to banks at their tills after April 9, 2022, by other natural persons. Now, the CBR has allowed Russian lenders to sell the two convertible currencies if they are also obtained from other sources.
The regulator explained that these can include transactions with non-resident banks as well as foreign cash deposited by Russian legal entities. The adjustment will allow banks to increase the supply of dollars and euros in cash, its news service said, noting that other restrictive measures will remain in place until March 9, 2023, as announced earlier this year.
In August, the Bank of Russia extended restrictions on cash withdrawals in US dollars and euros for six months. At the moment, Russian banks are not restricted in selling other foreign fiat currencies, the report notes.
Moscow’s decision to invade Ukraine in late February was met with severe economic and financial sanctions introduced by the West. They limited Russia’s access to global finance, including its foreign currency reserves.
Currency restrictions enforced by the CBR have led to an increase in demand for crypto. Many Russians have bought bitcoins, other cryptocurrencies and stablecoins to use for money transfers abroad, among other things. It remains to be seen how their easing will now affect the local crypto market. A recent poll showed that almost a third of Russians are ready to buy coins in the next six months.
Do you think the easing of restrictions on foreign cash will influence the demand for crypto in Russia? Share your thoughts on the subject in the comments section below.
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