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Demand for cash surged in Russia amid news of partial mobilization

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The volume of cash in circulation jumped by 132.1 billion rubles on September 22, RBC reports, citing data from the Bank of Russia. The last time the indicator exceeded this value was on March 4, when the volume of cash jumped by 151.5 billion rubles.

Technically, the statistics of the Central Bank of the Russian Federation reflects the entire amount of cash put into circulation through cash desks and ATMs of banks, but this amount is close to the amount of cash withdrawals by the population and enterprises, since banks fill cash desks depending on customer demand, experts explained to the agency.

At the same time, the current growth of cash in circulation lags behind the peak values ​​recorded at the end of February almost on a daily basis. At the beginning of the crisis, Russians were actively withdrawing money from bank deposits and accounts: in a little more than a week since February 24, cash turnover in the country increased by 2.9 trillion rubles. Then the outflow stopped after a sharp increase in the Central Bank rate to 20% and, accordingly, bank deposit rates, as well as the introduction of restrictions on the withdrawal of foreign currency by the regulator.

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Experts interviewed by RBC associate the current surge in demand for cash with the partial mobilization announced in Russia on September 21. Directly on the day the presidential decree was issued, the demand for cash was low and amounted to 14.2 billion rubles, which is comparable to the levels of recent months. But the next day jumped more than nine times.

“This is, of course, a reaction to the news, but how sustainable it will be is unclear. I’m sure, 132.1 billion rubles. — this is not the exhaustion of all demand for cash in such times, people are preparing for the worsening of the situation,” Sofya Donets, chief economist at Renaissance Capital for Russia and the CIS, expressed her opinion.

“Probably, some citizens withdrew cash to travel to the nearest CIS countries, and, if necessary, expected to convert rubles into other currencies already in the near abroad,” suggested Yuri Belikov, managing director of Expert RA.

Source: Rosbalt

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