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Putin’s Army Call-Up Provokes Russian Deposit Withdrawals in Dollars, Euros

Vladimir Putin
Vladimir PutinPhotographer: Alexei Druzhinin/AFP/Getty Images

Russia’s central bank said a foreign currency deficit emerged last month as President Vladimir Putin’s military call-up provoked withdrawals from deposits in dollars and euros, as well as a surge in purchases of the currencies on the local bourse. 

Governor Elvira Nabiullina has called for a switch to currencies of “friendly countries,” such as the yuan. But demand for euros and dollars, which became “toxic” due to sanctions imposed over the war in Ukraine, has surged since the partial mobilization announced in September prompted hundreds of thousands of Russians to flee overseas.