Money Under the Pillow: The Population of Russia Has Hidden the Equivalent of 180,000,000,000 Euros 0 27

According to the latest data from the Central Bank, Russians are holding as much as 18 trillion cash rubles in their pockets and piggy banks, or about 180 billion euros. This is not just a lot - it is a very large amount! Even if we take this sum only in five-thousand-ruble banknotes, their total weight would be 3,600 tons. On average, each resident of the country has 125,000 rubles. For a family of four, that amounts to half a million. At the same time, there are modern underground millionaires like Koreiko, who keep millions of rubles in their reserves. But why?

• There is no exact information on this matter. However, firstly, cash is actively used by the shadow sector. This includes not only crime but also legal spheres. For example, cash is still used in food and clothing markets, in car services, etc. Secondly, there are very conservative people. Someone got burned at some point and lost money in a bank or on the stock exchange. Since then, they trust no one. There are even some exotic cases of "sectarians" who do not recognize the financial system at all, - says Maxim Semov, chairman of the Committee for Increasing Financial Literacy of the Association of Russian Banks.

Such conservatism is also confirmed by social surveys. They are conducted every month at the request of the Central Bank. So, every third respondent (32%) believes that savings are better kept in cash form right now. It is now clear where the people who constantly withdraw money from ATMs come from.

• A certain portion of citizens still prefers cash. Many want to have some cash reserve on hand just in case other payment methods are not available. So, most likely, a significant portion of cash is indeed functioning as a means of savings, - explained the press service of the Central Bank.

Here you have digitalization and high interest rates on deposits. When it comes to hard-earned savings, for many, their own banknote feels closer to home, and security is more important than profitability.

Over the past ten years, the share of cash in retail transactions has significantly decreased. They have lost their status as the preferred means of payment, giving way to electronic payments. This is true worldwide. Russia is no exception. Ten years ago, almost 70% of all retail purchases were paid in cash; now it is about 13%. For comparison, in Germany, the share of cash payments exceeds 25%, while in China, South Korea, and Scandinavia, it is only 4-5%, - reported the Central Bank of Russia.

However, the total money supply (banknotes and coins + funds in accounts) has grown significantly in recent years, while the volume of cash savings has not changed as rapidly. According to Sberbank's CEO Herman Gref, "mattress and pillow" savings decreased by about 20% in just six months in 2024.