16:35, 11 November 2020
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Russians accumulate over 12 trillion roubles in cash amid coronavirus pandemic
Against the backdrop of the COVID-19 crisis, citizens are withdrawing cash from banks. By October 1, the amount of cash accumulated by citizens and Russian companies reached 12.1 trillion rubles, said Maxim Osadchiy, Head of Analytical Department at BKF bank.“Cash outside the banking system showed a record growth – 28.3 percent y/o/y. This has not happened since at least 2012. For comparison: just before the coronavirus crisis – as of March 1, 2020 – this growth was four times less and amounted to as few as 7.1 percent,” Maxim Osadchiy told RIA Novosti.
According to the analyst, Russians began to withdraw money from their accounts because of panic driven by the coronavirus pandemic. Russians were most active in withdrawing cash from banks in March and April, but this process had slowed down in early autumn. So, while the volume of cash increased by 6.6% in April and by as few as 1% in September.
Osadchy warned that a large amount of cash on hand increases the risk of inflation.