And Now, A Crackdown On CashBy
Within hours of the stunning announcement, massive lines had formed in the bitter, early-morning cold, waiting for banks to open. "People are afraid," says Vladimir Kuzmichov, a retired engineer nervously fingering his cash notes outside a Moscow bank. The Soviet state bank had just proclaimed that all 50- and 100-ruble notes would be banned and saving accounts would be partly frozen. Each person could exchange up to 1,000 rubles, the equivalent of less than four months' average pay, for small-denomination notes. Although the move was supposed to be aimed at dealing a blow to black-market operators, who hold huge sums of cash, its real effect will be to wipe out the savings of millions of ordinary Soviets such as Kuzmichov, who have stashed away billions of rubles in mattresses and coffee cans. Many of the wily black-market operators had converted their rubles into dollars long before.
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Tesla Unveils ‘World’s Fastest Production Car’ and Electric Big Rig
- Norway Idea to Exit Oil Stocks Is ‘Shot Heard Around the World’
- Getting a Dog May Save Your Life, Especially If You’re Single
- The Questionable Math Behind Manafort’s Extravagant Home Renovations
- Musk Dusts Off the Fundraising Playbook With Semi, Roadster Orders