CBR bars purchase of cash forex, limits withdrawals to $10,000 for six months

MOSCOW. March 9 (Interfax) - The Central Bank of Russia (CBR) has prohibited the purchase of cash foreign currency and restricted withdrawals of foreign currency from existing deposits to $10,000 for six months, citing the sanctions imposed against Russia.

Below is the complete text of the CBR's announcement and its explanations.

"The Bank of Russia is setting the following rules for withdrawal of funds from the foreign currency deposits or accounts of individuals from March 9 to September 9, 2022:

All client funds in foreign currency accounts or deposits are preserved and booked in the currency of the deposit. A client can withdraw up to $10,000 in cash foreign currency and the remaining funds in rubles at the market exchange rate on the day of withdrawal.

At Russian banks, about 90% of foreign currency accounts do not exceed the amount of $10,000, meaning 90% of the holders of foreign currency deposits or accounts will be able to completely receive their funds in cash foreign currency.

In the period that these temporary rules are in effect, foreign currency will be given out in U.S. dollars regardless of the currency of the account. Conversion of other currencies into U.S. dollars will take place at the market exchange rate on the day of withdrawal.

It will be possible to receive the foreign currency at the bank cash counter.

Individuals can continue to keep funds in foreign currency deposits or accounts. All funds are preserved and booked in the currency in which the account or deposit was opened. The conditions of the deposit or account are not changing. Interest on the deposits will be accrued as usual, in the currency in which the deposit was opened.

Individuals will also be able to open new foreign currency accounts and deposits but, while the temporary rules for transactions with cash foreign currency are in effect, it will be possible to withdraw funds from them in rubles at the market exchange rate on the day of withdrawal.

Banks will not sell cash foreign currency to individuals during the period in which the temporary rules are in effect. It will be possible to exchange cash foreign currency for rubles at any time and in any amount.

Clients of all banks without exception can receive funds from their foreign currency deposits or accounts. Banks might require several days in order to bring the necessary amount in cash foreign currency to a specific branch."