The Central Bank of Russia has refuted claims about freezing bank deposits, emphasizing financial stability and public trust.
They pointed out that freezing deposits would not only violate citizens’ rights but also shake the very foundations of the banking system. The bank’s governor, Elvira Nabiullina, had raised interest rates to 21% last year to tackle soaring inflation, which has been a real headache for the economy.
With high rates, many people rushed to deposit their money, but then these rumors started flying around, causing a bit of panic. The bank reassured everyone that in a market economy, freezing deposits is simply not an option.
This isn’t the first time they’ve had to address these concerns. Back in November, Nabiullina called similar worries “nonsense” when asked by parliament.
The backdrop here is Russia’s ongoing war in Ukraine and the sanctions that followed. Despite the challenges, including high inflation and a struggling ruble, the economy has managed to stay afloat, partly due to military spending and new trade routes with countries like China and India.
However, the central bank has warned that the economy is at risk of overheating, with inflation hitting nearly 9% recently. Prices for everyday items have shot up, making life tougher for regular folks.
As the war drags on, some experts are saying that Russia might run out of cash before the year ends, which could really impact their ability to keep funding the war and supporting the economy.
