The Russians have sharply increased the demand for cash

In April, the volume of cash in circulation received through banks increased by 366.9 billion rubles, follows from the data of the Central Bank. This is the sharpest outflow to cash since the beginning of the year: in January there was a seasonal withdrawal and return of funds to a non-cash form, in February the outflow was small (121.1 billion rubles), and in March the liquidity in the hands of the population and business was again reduced (- 29.7 billion rubles). If we exclude the seasonal growth of cash in circulation at the end of the year, April figures will be comparable to the level of June last year (391.8 billion rubles), when RUSSIA only began to lift restrictions after the first wave of the CORONAVIRUS pandemic. Throughout 2020, Russians showed an increased demand for cash: the volume of banknotes and coins in the hands of the population and businesses showed a record increase in ten years, RBC wrote.

What is the reason for the new surge

In April, before the May holidays, in Russia there is traditionally an increase in demand for cash, notes Yegor Susin, HEAD of the strategy development center at Gazprombank. But this year, according to him, the outflow was higher by about 100 billion rubles. The expert does not exclude that one of the reasons was the decision of the authorities to increase the number of days off in May.

On April 23, the head of Rospotrebnadzor, Anna Popova, asked the president to make non-working days from May 4 to 7 due to the risk of aggravating the situation with covid-19 . Vladimir Putin approved the idea and issued a decree according to which Russians, by decision of employers, may not work from May 1 to May 10.