After Putin's speeches, Russians decided to withdraw their funds from bank accounts
The demand for cash among Russian citizens skyrocketed in the days when President Vladimir Putin addressed them, Forbes reported. The first significant jump occurred after the announcement of the income tax introduction on deposits, the second after the extension of the quarantine until the end of April.
With the help of ATMs and bank branches the Russians withdrew about one trillion rubles from their accounts, which is more than last year. Denis Poryvai, senior financial markets analyst at Raiffeisenbank, claims that this happened due to citizens ‘fears about the banks’ work during the quarantine period. People were stocking up on cash for exactly the same reason as food.
Former Minister of Economy Andrey Nechaev also spoke about the connection between cash withdrawals and the introduction of new taxes in his interview to the radio station Echo of Moscow. In addition, he noted the outflow of deposits. Also the quarantine was extended for a significant period, so the Russians wanted to get a financial cushion for a difficult period. However, he called the amount of 1 trillion rubles overstated and approximate due to the lack of detailed statistics.