Russian banks imported $5 Billion in foreign cash in December

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Russian banks imported $5 Billion in foreign cash in December
22 Feb 2022
4 min read

News Synopsis

Russia's ACRA rating agency estimates that banks in Russia imported $ 5 billion worth of foreign currency banknotes in December as a precautionary measure in the event of increased demand due to sanctions. The dollar has traditionally dominated such imports, and many Russians prefer to hold it with other currencies as a hedge against the depreciation of the ruble and rising inflation. Both may be due to foreign sanctions.

The USA is considering new sanctions against Russia, proposing to ban some major banks from trading dollars and reduce their ability to meet their dollar-denominated obligations. The Russian central bank declined to comment, but national banks regularly import foreign currency cash to meet customer demand for dollars and euros needed in the event of travel abroad or contingencies.

TWN Special