Increasingly, Russians are choosing to keep cash, against the backdrop of repeated mobile internet disruptions and economic difficulties that push companies to avoid full tax payments.
The trend puts additional pressure on the Russian economy, which is in a process of slowing down due to the four years of war in Ukraine, shows BBC.
According to data from the Central Bank of Russia analyzed by the BBC, the cash in circulation has increased by 1,560 billion rubles (approximately 20 billion dollars) since the beginning of the year. This is the largest increase recorded for this period of the year, outside the period marked by the Covid-19 pandemic.
The increase in cash usage is also fueled by drone attacks launched by Ukraine, which have led Russian authorities to frequently suspend mobile internet in several regions of the country. Thus, electronic payments become difficult to use, and the population prefers to have cash on hand.
“Cash gives you a sense of control and security. If an emergency situation arises and the network goes down, I can still buy basic goods,” a resident of Moscow declared to the BBC, under the protection of anonymity.
This is not the first time the Russians have taken refuge in cash. Similar phenomena were observed after the partial mobilization decree in September 2022 and during the Wagner group’s revolt in June 2023.
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