Enlarge image
Queue in front of an ATM in Moscow
Photo: Vyacheslav Prokofyev / imago images / ITAR-TASS
A large part of Russia's multi-billion dollar foreign exchange reserves are stored abroad and are likely to fall under the sanctions with which the West has reacted to the attack on Ukraine.
In order to reduce the outflow of capital in foreign currency from Russia, Russia banned the export of foreign cash above a certain limit from this Wednesday.
According to a decree signed by Russian President Vladimir Putin, cash in foreign currency with a value of more than $10,000 (almost 9,000 euros) is affected by the ban.
Foreign exchange is currently in particularly high demand in Russia after the ruble exchange rate plummeted.
The people of Russia fear for their savings after the unprecedented devaluation caused by the war.
Russians buy technology before prices go up
Many people in Russia are withdrawing en masse from their accounts.
Long queues have been forming at ATMs in Moscow for days because of the Western sanctions against Russian banks.
In addition, numerous people are currently leaving Russia because of the war in Ukraine because they are afraid of a worsening of the situation.
So they try to keep their cash safe.
Putin justified his ban on the export of foreign cash with "unfriendly" steps taken by the United States and other western states and organizations against Russia.
Numerous Russian banks are subject to sanctions.
That's why some card payments in shops no longer work.
Extra price tags for western goods
Also, many ATMs no longer give money.
Fearing that the ruble would devalue, many Russians in Moscow, for example, buy technology such as mobile phones before prices go up.
In many grocery stores, shop assistants are already sticking new labels on Western goods in view of the fall in the value of the rouble.
Many products, such as wine and sparkling wine, increased in price by several thousand rubles.
apr/dpa
