Russians Advised To Pull Their Money Out Of Banks And Prepare For ‘Black Market In Cash’

A columnist for Russia’s Vedomosti newspaper, a joint venture between the Financial Times and The Wall Street Journal, has advised readers to pull their savings out of banks and convert them into physical dollars. The ruble has tanked over the past year, falling over 50% from 33 rubles to the dollar to 67 rubles at market open Friday. The collapse in the currency’s value has helped drive up prices in the country, which is heavily reliant on imports, with inflation surging to 15% in January. Now, it seems, it is affecting sentiment on the streets. Andrey Panov, a freelance columnist for Vedomosti, writes: It is better to keep money in foreign currency (dollars more than euros as the US economy is doing better than the EU) and prepare for what many economists are already saying could be a return to the conditions of the 1990s … It is better to take your savings, or at least a portion of them, out of the banks. Who can guarantee that what will happen next won’t be a situation in which all foreign currency deposits are forcibly converted [into rubles] or frozen? After all, the black market in cash worked even in Soviet times.

Article here