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Peter Davis

An writer at FOMOdrive

  • Aug 28, 2023
  • 3 min read

Banks have stepped up the fight against the dollar and the euro

Russian banks intensified their battle against hostile currencies.

Citibank has declared that they will no longer be accepting US Dollars and Euros at their ticketing counters.

Raiffeisenbank is increasing the fees for incoming transfers in US dollars.

Cash is now being sold by banks at the rate of the Moscow Exchange.

In exchange trading, the Chinese currency is gaining strength against the dollar.

Last week, Citigroup's Russian subsidiary, Citibank, announced that it will no longer accept or purchase dollars and euros at its box office starting August 22. However, the bank's website is currently advertising a special rate for selling dollars and euros at its branches.

Starting on September 1, Raiffeisenbank will be increasing its commission for incoming transfers in US dollars. The commission will be applicable to transfers ranging from $1,000 to $10,000. The bank has attributed this decision to "changing market conditions". Additionally, since August, Raiffeisenbank has ceased to accept foreign currency from individuals.

Kommersant Tak reports that Sovcombank will be offering customers cash currency at the exchange rate without any additional charges, as part of a policy adopted by banks with Russian capital. This promotion will be in effect until the excess cash currency has been sold.

in an interview with the newspaper.Alexei Voylukov, Vice President of the Association of Banks of Russia (ADB), explained in an interview with the newspaper that the demand for cash currency is limited today, and during the period of appreciation, this is not the first time that citizens carry dollars to banks.

Cash currency is no longer profitable due to the lack of significant operations being conducted with it. Businesses are not requesting cash currency from unfriendly countries, and parallel imports can be resolved without cash, so banks are getting rid of it, according to Ilya Zharsky, managing partner of the Veta expert group.

Over the past three days, the yuan has become the dominant currency in all major trading pairs on the Moscow Exchange. The total volume of trading in the Chinese currency with the execution of transactions "today" was 110 billion rubles, compared to 100 billion rubles with the US dollar.

The high interest in the currency is being attributed by analysts to the population, who, in the face of a strong depreciation of the ruble, are increasingly turning to the currencies of friendly countries, particularly the yuan, for protection.

The yuan appears to be a less risky option compared to dollars and euros, given the restrictions and increased commissions associated with sanctions. This is evidenced by the yuan's increasing popularity in the Russian Federation.

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