Russia Shifts $2.3 Billion in Cash as Sanctions Bite and Yuan Push Falters

Russia is back in the spotlight after recent issues with the Libyan dinar, which Libyan officials attribute to a surge in counterfeit bills reportedly linked to Russia.

Newly analyzed customs data reveals Russia has moved $2.3 billion in cash to Moscow, with Turkey and the UAE facilitating these transfers amidst sanctions. Interestingly, over half of this cash’s origin remains unknown.

Despite the Kremlin’s push to promote the Chinese yuan, many Russians still prefer holding dollars and euros for their reliability. Dmitry Polevoy of Astra Asset Management notes that the dollar continues to be a favored currency among Russians.

This ongoing preference highlights a gap between Russia’s official economic policies and the practical choices of its citizens. The high demand for foreign cash is driven by travel and savings needs.

Additionally, President Putin’s legalization of Bitcoin mining represents a move to overcome financial barriers. Russia’s recent presidency of the UN Security Council has also been used to promote a “multipolar world” and challenge the dominance of the US dollar, aligning with the goals of the BRICS nations.