Russia’s central bank said today that a small easing of currency restrictions on banks, which took effect this week, will boost the supply of cash in dollars and euros in the local market.
Under current rules, banks were only allowed to sell foreign currency cash bought by individuals after April 9.
But starting this week, they are allowed to sell cash in dollars and euros taken from other sources, financial news agency Frank Media reported on Saturday, citing a letter the central bank sent to credit institutions.
“This is an additional correction of measures already in place, which allow for an increased supply of dollars and euros in cash on the Russian market,” the Bank of Russia said on Saturday in an emailed response to a request for comment.
This change marks the relaxation of capital controls that have supported the ruble in recent months. It is expected to put downward pressure on the local currency and could ease concerns among Russian households about the supply of foreign currency.
With the exception of dollars and euros, Russian banks have been allowed to sell citizens foreign currency without restrictions since May. The restrictions on dollars and euros will remain in place until March 9, 2023.
Source: Capital
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