Money and Markets

Russia's bank loosens restrictions on money transfers – only for those that don't support sanctions

Business Insider US
Russian rubles
Russian rubles
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  • Russian residents and non-residents from countries that don't support Western sanctions can transfer more money abroad. 
  • Those who fit these parameters can now move up to $10,000 within a 30-day stretch. 
  • Previously, the central bank had a $5,000 limit for non-Russians transferring money out of the country.
  • For more stories go to www.BusinessInsider.co.za.

Russia's central bank announced Friday that it would ease restrictions on money transfers going out of the country for residents and non-residents from countries that don't support Western sanctions. 

Those who fit these parameters can transfer up to $10,000 within a 30-day stretch. Previously, the central bank had a $5,000 limit for non-Russians transferring money out of the country, among various other restrictions

It also announced that transaction amounts would be calculated using the Bank of Russia's official exchange rates, which usually reflect a stronger ruble than other rates thanks to a series of capital controls the government implemented.

Meanwhile, foreign clients still cannot sell securities through Russian brokerages, and the central bank has limited the amount of dollars Russians can pull from foreign-currency accounts. 

The ruble has since rebounded from a value of less than a penny to near pre-invasion levels, helped by continued foreign-currency inflows from energy sales, which have largely avoided Western sanctions.

After the ruble crashed, Russians turned to a black market for dollars and euros. People flocked to social media to buy and sell currencies, and then would rendezvous at locations like train stations — and even a McDonald's. 

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