Demand for cash currency sharply increased in Russia

Baku. 23 August. REPORT.AZ/ Demand for cash currency in Russia increased 3.6 times in June and amounted to 1,2 billion USD compared to May.

Report informs referring to the consolidated report of Russian Bank (Central Bank) in June demand for cash dollar increased by 3.8 times, while demand for euro up by 3.4 times. Moreover, authorized banks brought 1.5 bln USD to Russia in June and it was sufficient to meet demand. During the reporting period the volume of euro imported to country increased by 68% while the volume of dollar fell by 49%.

According to the Bank of Russia due to the start of the tourist season increase in demand for cash currency is accepted as normal. Vice president of the ICF Financial Center Stanislav Verner said increase in demand for cash currency by 260% also associated with probabilities that compared to the ruble dollar and euro will not fall below the current level. Notably, currently the RUB/USD is 64, while RUB/EUR - 73 and further strengthening of the ruble at this level is not real.

Notably, demand for foreign currency in cash market rose sharply last week. In connection with this commercial banks operating in Azerbaijan reduced per person limit in sale of dollar cash. At present, per person limit in sale of dollar cash ranges from 100-500. Some commercial banks suspended the sale of cash. Shortage of cash in currency market is expected to continue for some time. Currency market shortages can be resolved by increasing supply up to 300 mln USD in the upcoming auctions. This can drive SOFAZ out of the cash transfer program to the state budget. At present SOFAZ is not willing to take such a step. However, the current situation creates problems in ensuring financial stability.