Some restrictions on Russian banks selling dollars and euros to the general public have been loosened by the Central Bank of Russia. Since currency restrictions have been a major factor in driving up demand for digital coins, the country’s crypto market may be impacted by the increased foreign cash supply.
According to the Interfax news agency, the Central Bank of the Russian Federation (CBR) has lifted one of the limitations on the sale of U.S. dollars and euros in cash to private individuals imposed in response to Western sanctions over the conflict in Ukraine.
Russians could previously only purchase dollars and euros that were sold to banks at their cash desks on or after April 9, 2022, by other real people. Now that they can also be acquired from other sources, the two convertible currencies may be sold by Russian lenders, according to the CBR.
The regulator clarified that these could incorporate cash deposits made abroad by Russian legal entities as well as transactions with non-resident banks. The adjustment will allow banks to increase the supply of cash dollars and euros, its press service said, noting that other restrictive measures will remain in place until March 9, 2023, as announced earlier this year.
In August, the Bank of Russia extended restrictions on U.S. dollar and euro cash withdrawals for another six months. At the moment, Russian banks are not limited in the sale of other foreign fiat currencies, the report notes.
After Moscow decided to invade Ukraine in late February, the West imposed severe economic and financial sanctions. They have restricted Russia’s access to the international financial system and its foreign exchange reserves.
The CBR’s currency restrictions caused a surge in interest in cryptocurrencies. Numerous Russians have been purchasing bitcoin, other cryptocurrencies, and stablecoins in order to use them, among other things, for international money transfers. It is unclear how their current loosening will impact the local cryptocurrency market. According to a recent survey, nearly a third of Russians are prepared to purchase coins in the upcoming six months.