Home   Finance    Power Engineering    Metallurgy    Technologies    Insurance    Transports    Property    Health care  Right  Ru  
Cash demand in Russia returns to pre-crisis levels
In July 2020, fewer banknotes entered circulation than in the pre-crisis February. From the statistics of the Central Bank that 179 billion rubles were put into circulation. in the form of cash banknotes. This is much less than in previous months, which saw the peak of volatility in financial markets and the pandemic in Russia.
 
Cash demand in Russia returns to pre-crisis levels
 
In March, the volume of cash in circulation increased by 700.9 billion rubles, in April - by 544 billion, in May - by 248.2 billion, and in June - by 391.8 billion rubles. The July figure is comparable to the level of February this year: then the hands of the population and business received banknotes worth 185.8 billion rubles.

How did the high demand for cash develop in Russia?

According to the Bank of Russia data as of July 1, there were 12.43 trillion rubles worth of banknotes and coins in circulation in the country. Since the beginning of the year, the figure has grown by 1.8 trillion rubles, or 16.9%, and the main surge in emissions occurred in March-June.

In March, after the collapse of the ruble and the introduction of the first restrictions to combat the coronavirus, banks experienced an outflow of customer funds, the Central Bank said. As noted by the regulator, the excess liquidity of the banking sector fell by 1.5 trillion rubles. and about half of that amount turned into cash. The Central Bank linked this with the behavior of the population: in the conditions of the crisis and the upcoming self-isolation regime, citizens were interested in keeping cash.

The share of the gray sector in the economy during the pandemic could grow, noted in a recent review by analysts of Sberbank. According to their estimates, in April-June about 8% of the companies' proceeds were not disclosed. “There is a risk that the period of self-isolation will turn out to be a turning point in the long-term trend of increasing the share of non-cash transactions,” they explained.

What has changed in July?

It is possible that after the restrictions were lifted, the business became more active in making payments as usual, including in non-cash form. The slowdown in the growth of cash in circulation is a temporary phenomenon that may come to naught in the second wave of the pandemic.

The removal of restrictions on business activities also influenced the population's desire to stock up on cash. In June and July, many businesses resumed their work and paid wages. This, in turn, led to a decrease in the rate of cash withdrawal by the population from deposits and bank accounts.

The demand for cash was still at a high level in the first half of July, but in the second half of the month it has already declined and approached the seasonal dynamics. Thus, as the restrictive measures roll back and economic activity recovers, the demand for cash will gradually normalize. However, this process will be gradual, given the heterogeneity of recovery processes in the economy, the Central Bank believes. It can stretch into the first half of 2021.
 
Read also:

  • Gold traded above $ 2000 for the first time in history
  • Cyprus agrees to raise taxes for wealthy Russians
  • Profit of JPMorgan in the I quarter of 2018 increased to $ 8.71 billion
  • US GDP in Q2 2020 collapses by 32.9% for the first time
  • Bank lending in the euro area weakened in February 2018


  • The most innovative economies of the world 2017


    World Economic Forum in Davos 2018

    APEC 2017 Summit in Vietnam

    Valday - 2017: forum

    VEF-2017: results

    Summit BRICS in China 2017
             Calendar
    «    Ноябрь 2020    »
    ПнВтСрЧтПтСбВс
     
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    13
    14
    15
    16
    17
    18
    19
    20
    21
    22
    23
    24
    25
    26
    27
    28
    29
    30
     

    GDP of the world's countries 2019

    List of the IMF in billion. $.

      1 USA - 21482
      2 China - 14172
      3 Japan - 5220
      4 Germany - 4117
      5 India - 2957
      6 France - 2844
      7 Great Britain - 2809
      8 Italy - 2112
      9 Brazil - 1929
      10 Canada - 1820
    GDP per capita world countries 2017 (table)

    List of the IMF in $

      1 Luxembourg - 108004.9
      2 Switzerland - 79347.76
      3 Norway - 72046.29
      4 Qatar - 67269.64
      5 Macao - 61365.29
    The state debt of the countries of the world 2017

    Public debt of 2017 countries as a percentage of GDP

      1 Japan - 250,91
      2 Lebanon - 147,62
      3 Italy - 131,71
      4 Eritrea - 127,5
      5 Portugal - 127,33
      6 Cape Verde- 122,25
      7 Bhutan - 122,12
      8 Jamaica - 116,07
      9 USA - 107,48
      10 Barbados - 106,58
    Gold and currency reserves of the countries of the world 2017

    International reserves, billion USD

      1 China - 3080,7
      2 Japan - 1260,0
      3 Switzerland - 773,1
      4 European Union - 745,9
      5 Saudi Arabia - 492,9
      6 Taiwan - 444,4
      7 Russia - 419,9
      8 Hong Kong - 413,3
      9 India - 393,6
      10 Republic of Korea - 383,8

    Home   Finance    Power Engineering    Metallurgy    Technologies    Insurance    Transports    Property    Health care  Right  Ru  





    Economy news
       Copyright 2015 © econominews.ru