Russian Central Bank to Extend Capital Flow, Foreign Exchange Restrictions - Head
The Central Bank of Russia will extend capital flow and foreign exchange restrictions introduced in connection with Western sanctions, for a longer period, with no expectation for fundamental external changes, the bank's head, Elvira Nabiullina, said on Thursday
MOSCOW (Pakistan Point News / Sputnik - 02nd March, 2023) The Central Bank of Russia will extend capital flow and foreign exchange restrictions introduced in connection with Western sanctions, for a longer period, with no expectation for fundamental external changes, the bank's head, Elvira Nabiullina, said on Thursday.
"Restrictions on capital flow and foreign exchange were extremely important for the rapid stabilization of the situation. And throughout the year, you have seen many of them either softened or canceled. However, the restrictions will remain in the future since we do not expect fundamental external changes," Nabiullina said.
The bank's head specified that the duration of such restrictions as limits on cash withdrawal, transfer of funds abroad, as well as withdrawal of funds by non-residents from unfriendly countries expires soon, but "all these (restrictions) will be extended."
Nabiullina added that new Western sanctions against Russian banks are no longer perceived as a shock event and do not create systematic risks.
Meanwhile, the Russian central bank's first deputy governor, Olga Skorobogatova, said that work is underway to integrate the digital ruble in trade with friendly countries.
In 2022, the Russian financial sector faced severe issues against the backdrop of the military operation in Ukraine. Western nations and their allies have responded with comprehensive sanctions, including restrictions on the Russian central bank, export control measures, SWIFT cutoff for select banks, and asset freezes.
Russia has largely been able to withstand this sanctions pressure. The United Nations estimated in its January World Economic Situation and Prospects report that the Russian economy contracted by just around 3.5% last year as opposed to the 15% it was projected to shrink at the start of 2022. Russian President Vladimir Putin said in address to the Federal Assembly last week that the country's gross domestic product decreased by only 2.1% in 2022.