According to the Bloomberg report, One trillion rubles ($13.6 billion) were issued from ATMs and banks through March in Russia, which is more than for all of 2019. Denis Poryvay, an analyst at Raiffeisen bank in Moscow, said that people were afraid that banks would be unavailable during the quarantine, and people withdrew money for the same reason as people hoarded food. The number of new infections of COVID 19 is increasing each day exponentially.
A surge in withdrawals was seen after Putin announced a tax on bank deposits.
The surge in daily withdrawals coincided with President Vladimir Putin’s regular televised briefings that detailed the measures being taken to tackle the global pandemic from in the country. A significant surge in cash withdrawals was seen after the President announced a tax on bank deposits of over 1 million rubles, with further cash hoarding apparent after the President extended self-isolation measures. The United States also witnessed a surge in cash withdrawals amid the global pandemic. In late March, US currency in circulation saw its largest percentage increase since the panic around the “Y2K bug.”
Russia reports record daily rise of coronavirus cases.
According to the Moscow Times, COVID 19 cases in the countries are rising exponentially as the country reported its highest daily rise of over 6,000 new cases on April 19. So far, 47,121 cases have been reported in the country to date, with 405 deaths. Some experts have argued that the pandemic highlights the case for moving away from physical money to digital means of payment as physical cash can spread viruses and bacteria among people.
Currently, over 2,421,036 people have been found COVID 19 positive around the world, and over 165,902 people have lost their lives because of this virus. The number of new infections cases is still increasing exponentially. Over 2 billion people around the world are under some sort of lockdown. Recently, US President Donald Trump announced to suspend funding to the World Health Organisation in the middle of a pandemic.