Currently, the key determinant in the financial markets is the uncertainty, and the introduction of restrictions on cash currency by the Central Bank is a reasonable step. Alexey Vedev, Doctor of Economic sciences, Head of the Financial Studies Department of the Gaidar Institute, shared this opinion with

"The major factor in the financial markets at the moment is the uncertainty. I think that in the current situation, the Central Bank is acting in the right direction. Firstly, the market has lost its bearings, and secondly, there is a bank panic or depositor panic taking place. The bank panic exists precisely amidst uncertainty. It implies that assets are becoming cheaper, and people withdraw their ruble and foreign currency deposits fr om the banks," the expert said.

In line with global experience, there is a traditional set of measures relevant for such cases, said Alexey Vedev. "It is limited to closing down trading, and I think this is absolutely the right decision, because many private investors would simply lose money in a panic. Apparently, banks are raising interest rates to make deposits more attractive (for example, offering 7% for the euro and 8% for the dollar). The third tool is a physical withdrawal lim it. Globally, this amount varied fr om 0 to around $ 20k. The rest was issued in the national currency, i.e., the lim it of $10.000 set by the Central Bank fits into this framework," he said.

These are measures against bank panic, but they are not confiscatory, they are restrictive, and it is important to understand that, Alexey Vedev stressed. The Central Bank says: “Wait until September, everything will calm down, and then you will withdraw or keep your foreign currency, he explained the regulator's position.

"Neither banks nor the Central Bank are giving up their foreign currency obligations, these are just restrictions on cash withdrawals. I do not see any reason to panic and queueing at ATMs. I should like to underline that I am referring to the global practice, i.e. there is the Argentinean experience, and the Turkish one, and quite a lot of countries have gone through financial crises. In this country the state of uncertainty occurred due to geopolitical risks. I

think that the Central Bank should create awareness to explain that plastic cards work, payments are made, and so on, and this is roughly what it is doing. My advice is not to panic and wait," he concluded.