Nabiullina: it is impossible to completely abandon currency control

Bank of Russia Governor Elvira Nabiullina said the regulator has begun easing currency controls. However, she clarified that it is impossible to completely abandon them. According to Ms. Nabiullina, currency control should protect Russia from sanctions pressure.

“Many deputies asked us whether we are worried about the outflow of capital in these conditions. It must be understood that this is not money lost for the Russian economy, a significant part of the currency that our companies and citizens hold abroad, this is servicing foreign economic operations. Sanctions make cross-border payments difficult for us, and this is how this problem is solved, ”said the head of the Central Bank in a speech in the State Duma (quoted from TASS).

According to Elvira Nabiullina, this is why foreign exchange control should protect Russia from the pressure that arose after the imposition of sanctions, and at the same time interfere with foreign economic activity as little as possible. “That is the balance we are striving for,” she added.

In addition, Ms. Nabiullina stated that Russia has great potential for the development of the capital market. According to her, only 10% of the shares are currently in free circulation against 80% abroad. The head of the Bank of the Russian Federation stressed that building the country’s own economic infrastructure was fully justified, but also among the priority areas is building international settlements.

After imposing sanctions on Russia, President Vladimir Putin signed a series of decrees to ensure the country’s financial stability. One of these documents banned the export of foreign currency in cash in excess of $10,000 from the country from March 2, 2022. In early April, the Bank of Russia softened requirements for currency trading by individuals and legal entities, as well as rules currency control under foreign trade contracts in the field of transport and for small businesses.