Russia Central Bank Denies Deposit Freezing Rumors

The Central Bank of Russia has firmly denied rumors about freezing bank deposits, labeling such ideas as 'absurd' and 'unthinkable.' The speculation arose against the backdrop of a significant increase in bank deposits, fueled by high interest rates that reached 21% last year. In response to public anxiety over a potential savings bubble, the central bank reassured citizens that freezing deposits would violate their rights and undermine the banking system's stability. With inflation nearing 9%, the economic landscape remains precarious, but the bank emphasized that it would not resort to extreme measures like freezing funds. Historical experiences of hyperinflation and banking crises have heightened fears among Russians, making the central bank's reassurances critical for maintaining trust in the financial system. Despite the ongoing economic challenges, including sanctions and military spending, the banking sector has largely avoided crises.