News in Brief

The Role of Cash in War

News from Ukraine is grim following Russia’s invasion. It highlights, yet again, the role of cash at times of huge stress. In Russia and in Ukraine people have turned to cash. with large queues at bank branches and ATMs. The National Bank of Ukraine enacted a temporary cash withdrawal limit of 100,000 Ukrainian hryvnia per day (c. $3,339).

In Romania, in response to the influx of Ukrainian refugees, the central bank has instructed lenders to increase how much foreign currency, particularly euro banknotes, they hold. Commercial banks are regulated and have access to additional cash, but private exchange offices rely on supply and demand. The Romanian press reported their exchange rate increasing from an interbank market level of 4.95 lei to 5.3-5.4 lei per euro.