Russian Banks Import $5 Billion In Forex

A Russian rating agency, ACRA, has estimated on Monday that Russian banks imported $5 billion worth of banknotes in foreign currencies in December.

The agency claims dollars traditionally dominate such imports which, along with other currencies, many Russians like to hold as a hedge against any drop in the value of the ruble or a rise in inflation.

Valery Piven, a senior director at ACRA, told Reuters that calculations based on technical reports that banks submit to Russia's central bank each month, showed that they had also imported $2.1 billion in foreign banknotes in November.

Piven said; "The ratio of forex assets and liabilities held by banks is regulated by the central bank and currently does not cause concern. The increase in forex imports is more related to a possible spike in demand for cash currency."

The United States is also considering new sanctions against Russia, proposing to cut some of its top banks from dollar transactions and reducing their ability to service dollar-denominated obligations.

Russia's banks regularly import foreign currencies in cash to meet demand from customers for dollars or euros needed for overseas travel or in case of unforeseen circumstances.