Bank of Russia eases restrictions on dollar and euro cash purchases – Financial Bitcoin News

Russia’s central bank eased some restrictions on Russian banks selling US dollars and euros to the public. As foreign exchange restrictions are the reason for the increase in demand for digital coins, the increase in the supply of foreign currency can affect the crypto market in the country.

The Russian Monetary Authority expands citizens’ access to foreign currency

The Central Bank of the Russian Federation has lifted one of the bans on cash sales of US dollars and euros amid Western sanctions over the war in Ukraine, Interfax news agency reported.

Until recently, Russians could only buy dollars and euros sold by other physical persons to banks after April 9, 2022. Now the CBR has allowed Russian lenders to sell the two convertibles if they get them from other sources.

The regulator explained that these may include transactions with non-resident banks as well as foreign cash deposited by Russian legal entities. The adjustment will allow banks to increase the supply of cash dollars and euros, the press service said, adding 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 withdrawals in US dollars and euros for another six months. Currently, Russian banks are not limited to the sale of other foreign currencies, the report.

Moscow’s decision to invade Ukraine at the end of February came in the face of heavy economic and financial sanctions imposed by the West. They have limited Russia’s access to international finance, including its foreign exchange reserves.

Currency restrictions implemented by the CBR have led to an increase in the demand for crypto. Many Russians have been buying bitcoin, other cryptocurrencies and stablecoins to use for overseas money transfers and other purposes. It remains to be seen how their release will affect the local crypto market. A recent poll showed that a third of Russians are ready to buy coins in the next six months.

Do you think the easing of foreign currency restrictions will affect the demand for crypto in Russia? Share your thoughts on the topic in the comment section below.

Lubomir Tasev

Lubomir Tasev is a tech-savvy Eastern European journalist who likes Hitchens’ quote, “Being a writer is not what I do, it’s who I am.” Apart from crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.