The volume of cash in circulation in Russia in 2024 appears to have experienced its weakest growth in nine years, according to an analysis by RBC based on data from the Central Bank and statistics on banking sector liquidity at the year’s end.
By the close of 2024, cash circulation is estimated to have reached 18.44 trillion rubles ($179.9 billion), increasing by just 116.9 billion rubles ($1.1 billion) over the year — only 0.6 percent. RBC notes that this marks a significant decline compared to previous years.
In 2023, cash circulation rose by 1.97 trillion rubles ($19.3 billion), while in 2022, it increased by 2.28 trillion rubles ($22.4 billion). Over the past decade, annual growth in cash supply has typically averaged around one trillion rubles ($9.8 billion). The previous lowest increase was in 2016, at 267.6 billion rubles ($2.6 billion), while the last recorded decline occurred in 2015, when cash circulation fell by 318.8 billion rubles ($3.1 billion).
RBC noted that the data includes all cash outside the Central Bank, including funds in the cash reserves of commercial banks, although the majority is held by the public.
Experts interviewed by RBC confirmed the findings, attributing the slowdown to high interest rates, which encouraged people to deposit their money rather than hold it as cash. “Periods of declining cash circulation, as in previous years, coincided with times of high interest rates. The average consumer behaved rationally — high rates attracted their savings into deposits. This isn’t about people pulling their last savings from under their mattresses but rather being more frugal,” said Sofia Donets, chief economist at Tinkoff Investments.
According to the Central Bank, Russians’ term deposits in banks grew by 7.54 trillion rubles ($74 billion), or 25.8 percent, in the first ten months of 2024, reaching 36.83 trillion rubles ($361 billion).
RBC’s sources do not expect this trend to continue in 2025, predicting a likely decline in interest rates. However, Central Bank head Elvira Nabiullina has left open the possibility of a key rate hike at the February 2025 meeting.
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