Russians Lift Cash Payments to 30.2% as Banks Cut Credit Limits Amid Liquidity Strain
Updated
Updated · Букви · Jun 29
Russians Lift Cash Payments to 30.2% as Banks Cut Credit Limits Amid Liquidity Strain
1 articles · Updated · Букви · Jun 29
Summary
Cash accounted for 30.2% of purchases in April-May, while cash held by Russians rose 14% year over year to 20 trillion rubles, signaling a broad shift away from cards and cashless payments.
Frequent mobile and internet disruptions, plus small businesses' efforts to avoid card-acquiring fees and part of their tax burden, are driving heavier cash use in repairs, car sales, hotels and transport.
Large Russian banks have also begun cutting card credit limits as tighter reserve requirements, weaker profitability and slowing credit activity squeeze liquidity.
That cash withdrawal from deposits adds pressure on lenders, forcing more cautious financing for households and businesses and deepening the cooling of Russia's credit market.
Ukrainian intelligence expects further declines in lending, more regulatory pressure and a search for extra liquidity, leaving the economy operating in a narrower financial corridor.