Russians have used ATMs to cash more than RUR 1 trn since March 1, Bloomberg reported citing the Russian Central Bank data.
In March, RUR 700 bln ($9 bln) were pulled out of bank accounts and another RUR 327 bln in April. Experts attribute this to potential foreclosure concerns: some people fear that with the continued lockdown and the associated crisis, they might not be able to access their money later.
As of March 1, 2020, Russians kept a total of RUR 30.8 trn ($400 bln) in bank deposits. Their sudden dash for cash in early March was triggered by a sharp weakening of the national currency, said Artyom Deyev, head of analytics at AMarkets.
So far, according to the Central Bank, Russians have withdrawn RUR 1 trn from deposits, or slightly more than 3%. In response to the outflow of funds, banks began to raise their deposit rates.
“A crucial outflow of funds from people’s accounts is unlikely in the near future. This can only happen if the ruble depreciates steeply,” the analyst believes. “Banks also say they don’t see any danger of a massive outflow. However, after the self-isolation requirements are lifted, a sharp increase in demand for cash is possible as people will have obviously run out of it during the long holidays. Small regional banks may then have momentary liquidity problems.”