Cash fever in Russia: tens of billions of dollars have “melted away” from banks

As reported by The Moscow Times, this year Russian households and businesses increased their cash reserves by 2.1 trillion rubles (25.3 billion USD) – the largest increase since the start of the war, surpassing the 1.8 trillion rubles (21.7 billion USD) increase recorded from January to August 2023.

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Meanwhile, cash demand was driven by Russians fleeing the country due to military mobilization, the short-lived private military company “Wagner” rebellion, and allegedly unofficial payments made to mercenaries fighting in Ukraine.

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According to the forecast of Russia’s largest bank, Sberbank, the amount of cash in circulation could increase by 3.8 trillion rubles, or 45.8 billion USD, by 2026.

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This would be the largest annual increase in history.

As in 2023, the current cash surplus is driven by several factors.