Russians save cash: demand rose to the highest level since March

“The population always reacts nervously to shocks”

Dramatically, by more than 100 billion rubles a day, the demand for cash from citizens and businesses has increased. This is evidenced by the statistics of the Central Bank, which reflects the entire volume of cash put into circulation through cash desks and ATMs of banks.

On September 23, this volume increased by 114.2 billion rubles, and the day before – by 132.1 billion. This was the maximum since March 4, when the figure soared by 151.5 billion rubles. Moreover, the Friday figure reflects the potential demand not only on this day, but also on the weekend. The last time, according to the statistics of the Central Bank, the indicator exceeded 100 billion for more than one day in a row in late February – early March.

“An analogy arises with the situation in early spring, when people tried to get out to the post-Soviet republics or far-abroad countries. To do this, they were stocking up on dollars, and they intended to exchange the remaining rubles abroad for local currency, – says Georgy Svirin, specialist in international financial markets at the Finmir marketplace. “Most likely, this excitement will gradually subside, and the demand for cash will decrease.”

Moreover, Svirin notes that most of the transactions for the settlements of citizens are increasingly carried out using plastic cards or in bank applications. In the end, it is convenient and saves time. And if you are not planning to make a trip abroad in the near future, then there is absolutely no point in urgently transferring funds from bank accounts to a “three-liter bank”. Otherwise, a home supply of cash really doesn’t hurt.

“Partly those who are going to leave the country acquire cash rubles,” agrees financial analyst Sergei Drozdov. – The population always reacts nervously to geopolitical and economic upheavals, trying to play it safe, and nothing can be done about it. Let’s hope that our Central Bank will not have to intervene in events and take some protective measures, as in February-March. It is unlikely that the financial system will collapse, the regulator has learned to cope with this kind of phenomena.”

It is clear that against the backdrop of everything that is happening, people rush to save their money. The cash form seems to them now the best solution, argues the candidate of economic sciences Mikhail Belyaev. In his opinion, this alarmist mood is reinforced by reports from Turkey about the blocking of Mir payment cards by local banks. Although nothing threatens the Mir system in Russia itself, since it is under domestic jurisdiction and control.