Russia sees surge in cash and gold hoarding amid economic uncertainty

Russian citizens are increasingly shifting their savings away from the banking system and foreign currencies toward physical cash and gold due to growing economic uncertainty and the ongoing war in Ukraine. According to the Russian Ministry of Finance, there is an expected exponential growth in demand for gold as a safe haven, with citizens frequently purchasing physical gold bars, particularly in 100-gram units.

Data indicates a significant rise in cash holdings outside of banks. In the first seven months of the year, cash circulation outside the banking system grew by 2.1 trillion rubles (approximately $25 billion), marking the fastest growth rate recorded during wartime. This trend has also led to a decline in cashless payments, which fell by 0.5 percentage points in the second quarter of 2026, the first such decrease in years.

This shift is causing concern within the Russian financial sector. Sberbank’s CFO, Taras Skvorzov, has identified this trend as a major challenge for the banking system, noting that while deposits are not necessarily decreasing, new money is entering the system more slowly. The movement toward liquidity is attributed to fears regarding infrastructure disruptions, including internet, fuel, and logistics, caused by military actions.