Russia has imposed a ‘corralito’ to savings in foreign currency. The Russian Central Bank has limited to $10,000 the maximum that a client can withdraw foreign currency in cash in your foreign exchange accounts. If they wanted to get more money, they should do it in rublesat the official rate of the day, in accordance with the new provisions.
“A client can withdraw up to 10,000 US dollars in cash currency, and the rest of funds in rubleaccording to the exchange rate of the market on the day of withdrawal,” Sputnik reported in a statement. This limitation came into force this Wednesday and will be effective until next September 9.
The norm, disclosed this morning, indicates that “the banks -during the validity of the new order- they will not sell currency for cash the citizens”. “The entry of dollars into the country is limited by the sanctionsand it is the only reason for the special measures related to the sale of foreign currency in cash by banks”, he pointed out.
The Russian Central Bank, headed by Elvira Nabiullinahas underlined that this measure will not affect 90% of Russianssince nine out of ten accounts in foreign currency in the country do not exceed the $10,000 thresholdso the holders of these deposits or accounts in foreign currency could receive all of their funds in foreign currency in cash.
exchange for rubles
During the six months of validity of this order, citizens will be able to continue keeping funds on deposit or accounts in foreign currency, which will continue to be accounted for in the currency in which the account or deposit was opened, maintaining the conditions, as well as the calculation of interest on deposits. Furthermore, it will be possible exchange cash currency for rubles at any time and in any quantity.
The Russian President Vladimir Putinthere was already forbidden last february 28 transfer currency abroad and had ordered companies with economic activities abroad within the framework of foreign trade convert 80% of your income into rublesaccording to a decree signed this Monday by the president to defend Russia from western sanctions.
The decree also prohibited from the next day perform “forex trading related to the provision by of residents in favor of non-residents of foreign currency” and transfer foreign currency to accounts opened in banks and other financial market organizations outside Russia”.
Response to sanctions
The new regulation of the Russian Central Bank is adopted after the decision of the European Union, the United States and numerous other countries to impose Economic sanctions to Russia for his invasion of Ukraine on February 24, which has already caused thousands of deaths and more than two million Ukrainian refugees.
Since the invasion began, the EU has expelled seven Russian banks of the interbank system, among which are not Sberbank, the largest entity in the country, or Gazprombank, because they process a large part of the energy operations with the bloc.
In addition, it has frozen the assets of the Russian central bank in community territoryhas sanctioned the Russian president, Vladimir Putinand to Foreign Minister Sergei Lavrovamong other high-ranking government officials, as well as the country’s military leadership, approved a trade embargo on several sectors of strategic importance to the Russian economy since banned to Russia Today and Sputnik.
For his part, the US President Joe Bidenannounced this Tuesday, like the United Kingdom, the prohibition of US imports from Russian oil, gas and energy for the invasion of Ukraine.
The ban on energy imports from Russia by the US adds to the Economic sanctions recently adopted against Moscow for the invasion, in coordination with European partners, including the restriction of the international operations of the Russian central bank and the suspension of certain Russian banks SWIFT international system.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.