Clarifications on the temporary procedure for transactions with cash currency

03/10/2022 12:42:00 pm

Dear clients,

We do our best to provide you with the highest level of service and minimize the negative impact of the escalating international situation.

In this regard, we inform you that the Bank of Russia, as part of a set of measures to protect the economy under sanction restrictions, has introduced a temporary procedure for transactions with cash currency.

We would like to draw your attention to a number of innovations.

While the temporary procedure for transactions with cash currency is in effect (currently, the deadline is set until September 9), purchasing a foreign currency on hand will be unavailable in banks.

An individual has the right to withdraw foreign currency in cash in the amount of the balance on his/her account or on the deposit as of March 9, 2022, but not more than 10 thousand US dollars. Part of the amount exceeding 10 thousand US dollars can be received in cash only in rubles at the exchange rate as of the date of withdrawal.

The foreign currency in cash is withdrawn in US dollars, regardless of the currency of the account or deposit. Other currencies into US dollars are converted at the relevant exchange rate.

The exchange rate on the day of withdrawal is determined on the day of withdrawal on the basis of data on the weighted average exchange rate of the respective currencies calculated according to the transactions concluded at organized auctions on the day preceding the day of wihdrawal.

If a client has several foreign currency accounts in one bank, he/she will still be able to receive no more than 10 thousand US dollars in cash. However, if foreign currency accounts are opened in different banks, then he/she can withdraw 10 thousand US dollars in cash in each bank.

Cashless currency purchase is possible. However, funds in foreign currency that have been accrued to the account since March 9, 2022, cannot be received in cash while the restriction is in effect. These funds will be available in rubles at the exchange rate on the day of withdrawal.

The opportunity to withdraw currency from an account after September, 9 will depend on the development of the situation. The Bank of Russia reports: "...withdrawing dollars or euros may remain a problem. But we are looking for options so that people have alternatives. For instance, gold or the currencies of those countries that have not joined the sanctions against Russia."

These restrictions have no effect on ruble deposits and accounts.

Additionally, we inform you that the Government of the Russian Federation has proposed to exempt citizens from paying personal income tax (personal income tax) on interest on bank deposits. This initiative of the Government will make our interest rates on deposits of individuals even more profitable.