The expert predicted the timing of the exit from the “iron” ruble

Metal money can go out of circulation in 5-10 years, the president of the Association of Russian Banks Garegin Tosunyan suggested in an interview with Radio Sputnik.

Commenting on the massive rejection of cash during the pandemic, he predicted that the volume of metal coins would continue to decline. He stressed that the rate at which coins will be phased out depends on the decisions of the regulators.

“It does not depend on our citizens, it depends on the decision of the regulatory authorities. They are doing everything now to reduce the volume. In fact, there is a kind of leaching of metallic money from circulation, ”Tosunyan said.

According to him, metal coins do not pay off the cost of their production. The expert drew attention to the fact that money with a penny denomination has almost gone out of circulation.

However, Tosunyan believes that ruble denominated coins will not be out of use anytime soon.

“Rubles are also iron money, but 5-10 rubles is still money. 10 rubles is actually 10 cents, a little more. Of course, they will not go out of circulation completely soon. The range of significant leaching from circulation will not be less than 5-10 years, ”the banker concluded.

In 2020, the share of non-cash payments in Russia amounted to about 70%.

Nevertheless, on January 19, the press service of the Central Bank reported that demand for cash in Russia may return to pre-pandemic levels.

The regulator said that in November, for the first time since the beginning of the year, the volume of cash rubles in circulation fell, and its annual growth rate slowed down, “which may reflect the beginning of a return to the economic behavior that prevailed before the pandemic.”