Russians hoard cash as fear of crisis takes hold

Muscovites are hoarding thousands of dollars in safety deposit boxes, as fears intensify that Russia is teetering on the brink of a full-blown economic crisis, after the government devalued the rouble five times in six days.

World oil prices have plunged from almost $150 (


As the public frets about a repeat of the 1998 financial crisis, when the government defaulted on its debts, sending shockwaves through the world financial system, banks are reporting a surge in use of safety deposit boxes in the capital.

“Russians have a massive distrust of high finance even at the best of times,” said Neil Shearing, of consultancy Capital Economics.

“At the first sign of trouble, they pull their money out and stick it under the bed.”

Guardian