16 Feb 2023 14:02

Central Bank of Russia to extend some currency control measures, including restrictions on cash withdrawals, transfers

YEKATERINBURG. Feb 16 (Interfax) - There is currently no opportunity for the systemic liberalization of foreign exchange controls in Russia, with restrictions on cash withdrawals and foreign exchange transfers set to be extended, Central Governor Elvira Nabiullina said.

"Unfortunately, we do not see an opportunity now for some sort of systemic liberalization of currency restrictions. We first introduced severe restrictions, and as the financial situation stabilized, we lifted some of those restrictions. We lifted them fairly quickly, leaving only those that are now important for ensuring financial stability in general, but not just that," Nabiullina told reporters on the sidelines of the Ural Forum "Cybersecurity in Finances".

Restrictions on cash currency withdrawal were imposed because this, primarily dollars and euros, stopped coming into the country she said. "This reason still stands and so unfortunately, we have no reason to lift this restriction, it will be extended, perhaps with some modifications, as when we additionally allowed cash withdrawals of up to $10,000 not only in dollars, but also euros. There may be some nuances, but in general the situation will continue," Nabiullina said.

The same approach will be maintained with regard to the limit on transfers of funds by individuals abroad. "We do not systemically plan to revise restrictions on export; we raised this, too, we also raised it, and now, in our opinion, there are no grounds for an additional increase in this amount. It is already large," she said.

The Central Bank has discussed a possible increase in the limit on undeclared imports of foreign currency with various ministries. "We discussed this issue with various ministries, but so far there is no agreement. In our opinion, in principle, this is a matter for discussion. It will depend on the government's position," Nabiullina said.