The Bank of Russia reported that cash in circulation increased by 643.4 billion rubles in July, with the pace of movement away from cashless payments accelerating by 43.1 percent compared with June. That marked the highest figure since the start of the year, according to statistics published on the central bank's website.
The only monthly decline in cash turnover this year came in January, when it fell by 386.2 billion rubles. Over the following six months, demand for cash rose by 2.547 trillion rubles.
Regulator's explanation
In May, central bank representatives said the interest in cash stemmed from several factors. These included nationwide mobile internet problems, which required people to keep a certain reserve of cash on hand, and businesses adapting to tax changes by shifting toward cash payments.
The central bank also noted that the surge in cash demand in May coincided with a rapid withdrawal of funds from Russians' bank accounts. That month, the amount held in individuals' current accounts fell by about 300 billion rubles, while term deposits dropped by nearly 200 billion rubles.
