In the first half of the year, the number of five thousandth notes increased by almost 320 million pieces

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In connection with the pandemic of the coronavirus crisis, the Central Bank had to significantly increase the amount of the largest bill in circulation. As the Central Bank data show, this year the trend towards a reduction in the amount of paper money was interrupted, which resumed in 2019 after a two-year break. So, last year the number of banknotes decreased by 100 million pieces.

In the first half of 2020, the regulator printed 460 million banknotes, Izvestia was told in the press service of the Central Bank. Most – 320 million pieces – of the issue fell on the largest bill of five thousand rubles, which is about 1.6 trillion rubles, the calculations of Izvestia showed based on the Central Bank data. In this regard, the share of the five thousandth note increased in the total amount from 26% to 29%, and in terms of the amount – from 77% to 78%.

The Central Bank explains the need for additional emission by the needs of the economy, as well as by the increased demand for cash from businesses and citizens. Experts believe that the Central Bank, by increasing cash in circulation, is trying to stimulate lending, and, as a result, economic recovery.

Experts explain the increased demand for “real” money by fears about the possibility of a banking crisis and the growth of the “gray economy”. The population, experts believe, in the midst of the pandemic, took money from banks in order to have money on hand in case of self-isolation. And also because of the prospect of introducing a tax on income from deposits. In addition, repeated and record cuts in the key rate to stimulate the economy led to a drop in the promised yield on deposits, which makes keeping money in banks unprofitable.

At the same time, experts see the risk that the population has received a large volume of large banknotes, which are considered a means of accumulation, into their hands. In a situation of uncertainty regarding the “second wave” of the virus, citizens are in no hurry to return money to banks or actively invest in financial instruments. Therefore, freshly printed money can settle again “under the mattresses” for a while.

More details in the exclusive material of Izvestia:

The issue is feasible: over six months, five thousandth notes increased by 320 million pieces

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