The Central Bank allowed the liberalization of foreign exchange restrictions while easing sanctions

To mitigate sanctions measures in response to which the Central Bank could consider the liberalization of foreign exchange bans, the regulator attributed, among other things, the unblocking of assetsView of the building of the Central Bank of the Russian Federation

When introducing foreign exchange bans and restrictions, it is necessary to act on the principle of reciprocity, according to the draft “Guidelines for the Development of the Financial Market of the Russian Federation for 2023-2025”, prepared by the Central Bank.

“Any liberalization should be in relation to friendly states. At the same time, the Bank of RUSSIA may consider the option of liberalization in relation to unfriendly countries as a response to the easing of sanctions restrictions (for example, unblocking assets),” the document says.

The volume of foreign currency deposits of Russians has updated a ten-year minimum

At the same time, the regulator believes that currency regulation should help stimulate the transition to payments in rubles and currencies of friendly states. The Central Bank is in favor of reducing the "excessive currency value of assets and liabilities" of Russian non-financial organizations, primarily those associated with "unfriendly countries and their currencies."

It is also necessary to mitigate as much as possible administrative responsibility for violation of the requirements of currency legislation related to the imposition of sanctions, the document says.

The Central Bank also proposes to empower the regulator to determine the list of types of currencies (including the list of foreign currencies) that can be used to pay for shares (stakes) in the authorized capital of credit institutions, non-bank financial institutions.

Putin extended the decree in the field of currency regulation until 2024 Economics

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After the start of the military operation in Ukraine, Western countries imposed sanctions against Russia, and Visa and Mastercard payment systems left Russia, their cards issued in the country do not work in other states and foreign online stores. In addition, Russia's gold and foreign exchange reserves were frozen for a total of $300 billion. Also, a number of Russian banks were disconnected from the SWIFT interbank information exchange system, these restrictions affected, among others, Sberbank, VTB, Otkritie, MKB, Rosselkhozbank and others.

In March, President Vladimir Putin signed a decree in the field of currency regulation, according to which the Central Bank received a number of powers in this area. For example, to determine the amount of an advance payment under contracts from residents to non-residents from foreign countries or to issue permission to a resident participant in foreign economic activity not to carry out the mandatory sale of foreign currency. The decree includes other measures and will be valid until December 31, 2023.

Other measures include limiting the amount of currency transfers abroad (initially, the limit was $5,000 per month, but in July it was increased to $1 million); a ban on the EXPORT of cash currency from Russia by legal entities and individuals in the amount of more than $10 thousand, etc.