Russia Central Bank Denies Plans to Freeze Deposits

The Central Bank of Russia issued a firm denial Monday regarding circulating rumors about potential freezes on private bank deposits, as concerns mount over the nation’s economic stability.

“Such a move would severely undermine the banking system and financial stability,” the monetary authority said on Telegram, addressing widespread public inquiries that followed its recent aggressive interest rate increase to 21%.

The speculation reflects deepening public anxiety about Russia’s financial system as the country faces multiple economic challenges. President Vladimir Putin has acknowledged inflation’s impact, while basic food items including dairy products have seen substantial price increases, with inflation reaching nearly 9% in November.

Central Bank Governor Elvira Nabiullina, who previously rejected similar concerns during a parliamentary inquiry last November, maintains that deposit restrictions would be incompatible with market economics.

Despite international sanctions, Russia has sustained its economy through increased military expenditure and by developing trade relationships with Asian partners, particularly China and India. However, the central bank has cautioned about potential economic overheating amid a weakening currency and workforce shortages.

A Swedish economic analyst warned Tuesday that Russia’s financial reserves could be depleted by year-end, potentially compromising both its military operations and economic stability as the Ukraine conflict approaches its fourth year.

The high interest rates have attracted significant deposits into Russian banks, contributing to public concern about account accessibility. However, the central bank emphasized that restricting access to private savings would be “unthinkable” in any functioning market economy.

The monetary authority stressed that such actions would violate citizens’ fundamental rights to manage their assets, seeking to calm depositors’ fears amid ongoing economic uncertainty.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

Warren Wants To Probe Musk On Ukraine’s Starlink Report: “Not By One Billionaire”

Senator Elizabeth Warren is calling for a thorough investigation into SpaceX following Elon Musk’s admission...

Tuesday, September 12, 2023, 03:37:00 PM

Did Germany’s Economy Minister Just Accuse The US Of Profiteering Gas Revenues From The War?

Germany’s Economy Minister Robert Habeck has come close to accusing the United States and other...

Wednesday, October 5, 2022, 01:32:00 PM

US Sanctions Drives Insane Spreads In Ruble / Dollar Transactions

New US sanctions targeting Russia’s financial system have forced the Moscow Exchange (MOEX) to suspend...

Thursday, June 13, 2024, 07:58:21 AM

Russia 1984: Citizens May Soon Be Completely Disconnected From The Internet

With major Western communications and technology companies withdrawing their services from Russia – and subsequent...

Monday, March 7, 2022, 03:04:00 PM

Geopolitical Shift: Russia and North Korea Forge “Comprehensive Strategic Partnership”

Ahead of President Vladimir Putin’s visit to its Asian neighbor, Russia has announced the preparation...

Tuesday, June 18, 2024, 02:14:00 PM