Russia’s central bank imposes restrictions on foreign currency withdrawals
The Central Bank of Russia (CBR) announced on Wednesday that it would impose temporary restrictions on foreign currency cash withdrawals, local media reported. In a statement, the CBR said it has set a limit of $10,000 on foreign cash withdrawals from foreign currency accounts by customers until September 9, and customers who wish to withdraw more must balance in rubles. . He added that he could, Sputnik reported. “From March 9 to September 9, 2022, the Bank of Russia will establish the following procedures for cash withdrawals from foreign currency deposits or accounts of citizens.
“All funds will be held and accounted for in the currency in which the account or deposit was opened. The conditions of the deposit or the account will not be modified. Interest on deposits will, as usual, be calculated in the currency in which the deposit was opened. will be done,” the statement read. The central bank also said the new measures are unlikely to affect the majority of Russians with foreign currency accounts over $10,000.
All client funds in foreign currency accounts or deposits must be. Customers can withdraw $10,000 in cash and the rest of the money in rubles at the market rate on the date of withdrawal,” the statement read. This currency will be issued in US dollars for the duration of the period, regardless of the currency held on the account. Other currencies will be converted into dollars at market rates on the date of issue, TASS reported.
“In Russian banks, about 90% of foreign currency accounts do not exceed $10,000. This means that 90% of foreign currency deposit or account holders can receive funds entirely in cash. “, he told CBR. Banks will not sell foreign cash to citizens while the new regulations are in place, he said, adding that special measures have been imposed due to the restrictions on the flow of dollars to Russia from Western countries.
After Russia invaded Ukraine, the United States and its European allies imposed sanctions on several major Russian banks and senior Russian officials, including President Vladimir Putin, kicking Russia out of the SWIFT financial system. Many countries, including Japan, South Korea and Australia, have also imposed financial sanctions and travel bans on Russia. They are considering new targeted sanctions to freeze the assets and restrict the travel of Russia’s most influential political and military officials. Early Tuesday (local time), Biden announced a ban on US imports of Russian energy to bolster sanctions against Russia for its aggression against Ukraine.
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- Russia’s central bank imposes restrictions on foreign currency withdrawals
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