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Russia’s central bank tightens access to hard currency further -Breaking

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© Reuters. FILEPHOTO: A view outside shows Russia’s Central Bank headquarters, Moscow (Russia), March 29, 2021. The sign says “Bank of Russia”. REUTERS/Maxim Shemetov

(Reuters) – Russia’s central banking said Thursday it would restrict local businesses’ access to foreign currency cash over the next six-months. This is the latest move to protect precious hard currency against sanctions imposed on Ukraine.

Local businesses and entrepreneurs can’t receive more than $5,000 during the restrictions period from March 10 through Sept. 10. This is to help pay for work abroad.

According to the Bank of Russia, gold and other foreign currencies were also frozen by the sanctions. It added that it could raise the limit of $5,000 in certain circumstances, in consultation with regulators.

Individual businesspeople and firms can easily access foreign currency in cash.

This week, the central bank put restrictions on citizen’s ability to obtain foreign currency. It said that they could not withdraw more than $10,000 before Sept. 9th and that cash cannot be sold by banks.

Two weeks ago, sanctions were imposed by Russia for the invasion of Ukraine. This has triggered Ukraine’s most severe economic crisis since 1991.

In an effort to mitigate the damage, the central banking has more than doubled the main lending rate to 20%. They have also given liquidity to banks in order to provide additional liquidity. But the ruble as well as Russian assets have plummeted.

Since Feb. 25, Russia’s invasion, Russia’s central bank has restricted stock trading within the region.

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