Tuesday, February 5, 2008

Cash

I’ve just arrived home after an individual speaking lesson with Lena, (Russian girl studying to pass the IELTS test). The lesson involved going to a cafe and practicing conversational English. Always very interesting for me, as the topics we discuss often are to do with cross-cultural differences.
Today interestingly, we discussed the role cash has in Russia. Here cash is undoubtedly king. Banks are not trusted, ATMs are scarce, credit cards are an oddity and nearly all wages are paid in cash. Yes that’s right I receive my whole monthly wage, in cash, in one hit. It makes for an interesting trip home, wad of cash bulging from my pocket, while at the same time paranoid that someone will notice that yes “that’s not a gun in my pocket and no I’m not just happy to see you”.
I explained to her that the use cash back home is the opposite and is becoming quite rare. It is not uncommon to see people (stupidly) attempt to buy a Coke through EFTPOS. "They don't even carry $2 on them" I said. I continued on explaining that all big transactions, e.g. buying a car, house etc, were done through the banks, where cash is stored but rarely seen.
Russia is a completely different story. People buying a $70 000 car or a $200 000 flat will pay in cash! That’s right people will rock up to the negotiating table with a suit case full of money and just plonk it down. Just like the "Godfather" movies, however these people aren't gangsters they’re average Joes. It's the normal way to pay for something. Where the hell do you keep that sort of money if not for the bank? Well as I’ve now been informed, you keep it at home. Hmmm, yes that would explain the popularity of the very becoming steel fortress like doors that are so ubiquitous. Oh yes, come to think of it hat would also explain the 3 hidden pin hole camera, double steel door entrance at Nastya’s parents.

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