cash in the hands of Russians decreased by 318 billion rubles – Kommersant

The volume of cash in circulation in Russia decreased by 318.2 billion rubles. This is the maximum reduction since May 2022, RIA Novosti analyzed data from the Bank of Russia.

The reduction in cash volumes has been recorded for the third month in a row. In September, the volume decreased by 21.6 billion rubles, in October – 150.7 billion rubles.

In 2023, a decrease in the amount of cash held by Russians was recorded in January, but this dynamics is typical for the beginning of the year. The Central Bank raised the key rate in July 2023, which led to an increase in the interest rate on deposits to 8%. The next increase in the key rate on October 27 provoked a gradual increase in the deposit rate to 13% on average. The maximum rate in Sberbank is now offered when opening a deposit for six months (14%) with a SberPrime+ subscription and on the condition that you do not use money from other deposits in the bank. VTB promises to charge a maximum of 15% per annum for a three-year period when opening a deposit online or through an ATM.

Previously, a non-seasonal decrease in cash in circulation among Russians was recorded in the spring of 2022. At that time, citizens actively replenished bank deposits as the Central Bank’s key rate increased. In February 2022, the regulator raised the key rate to 20%, which provoked a sharp increase in interest rates on bank deposits. According to the regulator’s statistics, in February 2022 the maximum interest rate on deposits was 8%, and already in March it was more than 20%. Despite the decline for the entire 2022, an increase in the volume of cash of 2.24 trillion rubles was recorded. The country’s record increase in cash amounted to RUB 2.87 trillion. in 2020.

How the new half-increase in the key rate affected deposits – in the Kommersant-Dengi material “Autumn conscription rates”.

Alexandra Goroshilova