Bank of Russia Eases Restrictions on Purchases of Dollar and Euro Cash – Finance Bitcoin News

Russian Central Bank has removed some restrictions from Russian banks that sell U.S. Dollars and Euros to the public. As currency restrictions are a major driver for increased demand, the increased foreign cash supply could impact the cryptocurrency market.

Monetary Authority of Russia Expands Citizens’ Access to Foreign Cash

According to Interfax, the Central Bank of the Russian Federation has removed one of the bans on the sale of U.S. Dollars and Euros in cash to individuals that were imposed by Western sanctions in response the the conflict in Ukraine.

Russians used to be able to buy dollars and euro at banks’ cash desks, but this changed recently. Russian lenders can now sell these two convertible currencies to the CBR if the currency is also obtained through other sources.

These could include foreign money deposited by Russian legal bodies as well as transactions with banks that are not residents. It will give banks the ability to raise their cash supply in euros and dollars, according to its press service. Other restrictive measures, however, will still be in place up until March 9, 2023, it said.

The Bank of Russia imposed additional restrictions in August on U.S. dollars and Euro cash withdrawals. This was for six more months. The report states that Russian banks do not have restrictions on the sale or purchase of foreign fiat currencies at the moment.

Moscow’s decision to invade Ukraine in late February was met with harsh economic and financial sanctions introduced by the West. They have limited Russia’s access to global finances, including its foreign currency reserves.

CBR currency restrictions led to an increase in crypto demand. Russians are buying stablecoins, bitcoin and other cryptocurrency to be able to transfer money abroad. The impact of their current loosening on the crypto market is yet to be determined. Recent polls showed that nearly a third (33%) of Russians would be willing to purchase coins within the next six-months.

What do you think about the impact of easing foreign cash restrictions on Russia’s crypto demand? Comment below with your opinions.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.