Russia records record demand for cash in 30 years – media

The volume of cash in circulation in Russia increased by 381.2 billion rubles in May. This is the largest figure for this month since statistics were kept in 1995.

This is reported by The Moscow Times.

According to the publication, in April, the amount of cash in the Russian economy increased by another 678.7 billion rubles, and in March – by 301.1 billion. In total, since the beginning of the year, the amount of cash in circulation has increased by more than 1 trillion rubles.

Analysts attribute this trend to economic uncertainty and Russians’ fears about the future. In addition, regular internet outages play a role, as people may lose access to online banking and cashless payments.

The mood of depositors was also affected by the reduction in the key rate of the Central Bank of the Russian Federation, which made bank deposits less attractive.

Against this backdrop, the Russian central bank has tightened controls over ATM cash withdrawals since June 1. Banks should monitor limits and pay attention to unusual transactions, including large withdrawals after a long break or a series of transactions in a short period of time.

As previously reported, in May, the Russian authorities paid 204.3 billion rubles in compensation to oil refineries within the framework of the fuel damper. This is one of the highest figures in recent years.

Recall that Russia is facing increasing financial problems due to the war against Ukraine . Spending on the army and security already exceeds planned amounts, and the budget deficit is growing rapidly.