Bank of Russia introduces restrictions on cash currency

By Ovunc Kutlu

ANKARA (AA) - Bank of Russia introduced temporary restrictions for operations with cash currency, the Russian central bank said in a statement on Wednesday.

"All customers’ funds in foreign currency accounts and deposits have been preserved and accounted in the currency of deposits. Customers are allowed to withdraw up to 10,000 US dollars in cash and the remaining funds in rubles at the market exchange rate as of the date of a withdrawal," the Bank of Russia said.

"Balances in nearly 90% of foreign currency accounts with Russian banks do not exceed 10,000 US dollars, that is, 90% of the holders of foreign currency deposits or accounts will be able to receive all their funds in foreign currency cash," it added.

The procedure for cash withdrawals from citizens’ foreign currency deposits and accounts will be effective until Sept. 9.

"During the effective period of this temporary procedure, cash withdrawals will be made in US dollars, regardless of the currency of accounts. Other currencies will be converted into US dollars at the market exchange rate as of the date of a withdrawal.

"Foreign currency may be withdrawn at banks’ cash offices," the statement said.

People may continue to hold funds in foreign currency accounts or deposits, and customers will also be allowed to open new foreign currency accounts and deposits, the Bank of Russia also noted.

"However, during the period of the temporary procedure for foreign currency transactions, they will be able to withdraw funds only in rubles at the market exchange rate as of the date of a withdrawal," it added.

Russian banks have also started closing currency exchange points.