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The need to reintroduce stringent capital controls comes as Russian authorities grapple with a sharply weakening rouble, which tumbled past 100 to the dollar on Monday. One source at an exporting firm said the discussions concerned the forced conversion of up to 90% of exporters' revenues. Exporters who fail to return revenues to Russia could lose government support measures, too. One Russian banking source told Reuters that about $39 billion is stuck in Indian banks, which oil companies are unable to return to Russia. The high-level source said a minimal level of revenues was held in rupees, with even less in roubles.

Persons: Dado Ruvic, Central Bank Governor Elvira Nabiullina, Elena Fabrichnayaand Anastasia Lyrchikova, Gleb Stolyarov, Alexander Marrow, Gareth Jones, Nick Macfie Organizations: REUTERS, Reuters, RBC, FX, Central Bank Governor, Thomson Locations: Russia, Ukraine MOSCOW, Ukraine, Russia's, Moscow, India, Tbilisi

☆ Drastic Economic Moves Highlight Russia’s Wartime Bind
▼ + stars: | 2023-08-15 | by ( Anatoly Kurmanaev | More About Anatoly Kurmanaev | ) www.nytimes.com time to read: +1 min

For years, Russia’s central bank has skillfully shielded the country’s economy when crisis has loomed, drastically raising interest rates, restricting money movements or taking over ailing banks. The swift, sharp moves conveyed a clear message that, despite increasingly bitter economic conflicts with the West, economic stability would be maintained at any cost. The bank raised the benchmark interest rate by 3.5 percentage points to 12 percent. High interest rates raise the cost of borrowing, inhibiting spending. But political considerations can push in the opposite direction, for low interest rates that stimulate spending and keep the economy moving.

Persons: Elvira Nabiullina, Vladimir V Organizations: West Locations: assertively, Ukraine

A Russian rouble banknote is seen in front of a descending and rising stock graph in this illustration taken March 1, 2022. So it’s no surprise that a day after prodding by a Kremlin official, the central bank announced an emergency rate increase of 350 basis points to 12%. Stricter fiscal or monetary policies would hurt an economy weakened by the war effort and Western sanctions. After a record high in 2022, it fell 85% in the first seven months of the year, to some $25 billion, according to the Russian central bank. Before the plunge in the currency, the central bank forecast prices rising 5% to 6.5% this year, above its 4% target.

Persons: Dado Ruvic, Vladimir Putin, it’s, Putin, Elvira Nabiullina, Vladimir Putin’s, Maxim Oreshkin, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Kremlin, Reuters Graphics Reuters, Thomson Locations: Russia, Russian, Europe

☆ Tumbling rouble claws back ground as central bank to meet
▼ + stars: | 2023-08-14 | by ( ) www.reuters.com time to read: +6 min

Putin's economic adviser Maxim Oreshkin earlier said the central bank could ensure that the pace of lending drops to sustainable levels with higher rates. "The central bank has all the tools to normalise the situation in the near future." Asked earlier whether it might make an emergency hike from the current 8.5%, the central bank declined to comment. "The central bank is not fully in control," independent Moscow-based economist Ian Melkumov told Reuters. "The central bank doesn't want to kill the economy and businesses in the same way it had to last year," he said.

Persons: Rouble, Vladimir Putin's, rouble, Putin, Maxim Oreshkin, Oreshkin, Denis Popov, Popov, Matt Vogel, REUTERS Central Bank Governor Elvira Nabiullina, Vladimir Solovyev, Ivan, Timothy Ash, Ian Melkumov, Alexander Marrow, Marc Jones, Gareth Jones, Philippa Fletcher, Christina Fincher Organizations: TASS, of Russia's, FIM, Moscow News Agency, Handout, REUTERS Central Bank Governor, Popular, Kremlin, Reuters, BlueBay Asset Management, Thomson Locations: MOSCOW, Ukraine, Moscow, Russia, London

☆ The Kremlin has pumped so much money into the economy that it's creating a boom — but this house of cards could topple anytime soon
▼ + stars: | 2023-08-01 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Russia's wartime economy is thriving, the New York Times reported Monday. Corporate loans have increased 19% in the year to June as investments grew, according to The Times, citing Russian central bank's figures. Russia's central bank has also been candid about its gloomy assessments of the economy — which at times were at odds with more bullish statements from the Kremlin. But, the institution has come under pressure from Moscow to give a more "upbeat assessment" about the country's economy, Bloomberg reported in February. In April last year, Russian central bank governor Elvira Nabiullina warned the country's reserves won't last infinitely.

Persons: Wagner, Alexandra Prokopenko, Elvira Nabiullina, Ariel Chernyy, Chernyy Organizations: New York Times, Service, Putin, Times, Reuters, Wagner Group, The, Frank Media, Carnegie Russia Eurasia Center, Bloomberg Locations: Russia, Wall, Silicon, Ukraine, Russia's, Russian, Moscow

☆ Russian central bank surprises with sharper-than-expected rate hike to 8.5%
▼ + stars: | 2023-07-21 | by ( ) www.reuters.com time to read: +3 min

"Pro-inflationary risks have increased significantly over the medium-term horizon," the bank said in a statement. The central bank raised its year-end forecast for inflation - now just below 4% - to 5.0-6.5% from 4.5-6.5%, and said it was holding open the possibility of further hikes at future meetings. "The much larger-than-expected 100bp interest rate hike ... underscores policymakers’ concerns about inflation risks," said William Jackson, Chief Emerging Markets Economist at Capital Economics. Alfa Bank Chief Economist Natalia Orlova said the rate hike looked like a reaction to the situation on the currency market, given that the other inflation pressures mentioned had been evident at the previous central bank meeting on June 9. Central Bank Governor Elvira Nabiullina will shed more light on the bank's forecasts and policy in a media briefing at 1200 GMT.

Persons: William Jackson, Natalia Orlova, Wagner, Central Bank Governor Elvira Nabiullina, Alexander Marrow, Andrew Osborn, Kevin Liffey Organizations: Reuters, Capital Economics, Alfa Bank, Central Bank Governor, Thomson Locations: Russia, Ukraine MOSCOW, Ukraine, Moscow

☆ Panicked Russians withdrew 100 billion rubles from banks during the Wagner revolt, central bank says
▼ + stars: | 2023-07-12 | by ( Filip De Mott | ) www.businessinsider.com time to read: +2 min

Russians withdrew over $1 billion worth of rubles from domestic banks during the Wagner revolt, its country's central bank said. Whereas 500 billion rubles moved out of banks throughout June, a fifth of that was pulled from June 23-25. Though the act ended after a day, the political uncertainty it set off prompted fearful Russians to withdraw $1.1 billion worth of rubles. According to the Russian central bank, that's the highest cash demanded since late 2022, when Russia introduced a military mobilization decree. Speaking on Thursday at a St. Petersburg conference, Bank of Russia Governor Elvira Nabiullina indicated no plans to step in and support the ruble's exchange rate.

Persons: Wagner, That's, Yevgeny Prigozhin, Elvira Nabiullina Organizations: Service, Bank of Russia Locations: Wall, Silicon, Moscow, Russian, Russia, St, Petersburg

☆ Russia's central bank sounds alarms on the economy as the falling ruble and record labor shortage add inflationary pressures
▼ + stars: | 2023-06-10 | by ( Jason Ma | ) www.businessinsider.com time to read: +3 min

Russia's central bank sounded alarms on inflation amid the falling ruble and a record labor shortage. Since then, the central bank has brought rates back down as inflation has cooled. Other data have shown Russia is suffering from a record labor shortage as Vladimir Putin's war on Ukraine delivered a major shock to the workforce. And the mass exodus of Russians to other countries to escape military service or economic hardship has made the labor shortage even worse. The labor shortage also contributed to a sharp drop last month in Russia's industrial production, which tumbled 5% from the prior month.

Persons: —, Elvira Nabiullina, Vladimir Putin's Organizations: Service, Reuters, Kremlin Locations: Ukraine, Russia

☆ Who is Hafize Gaye Erkan, Turkey's first female central bank chief?
▼ + stars: | 2023-06-09 | by ( Karin Strohecker | ) www.reuters.com time to read: +2 min

LONDON, June 9 (Reuters) - Turkey's new central bank governor Hafize Gaye Erkan faces the tough task of alleviating a bruising cost-of-living crisis while hoping to restore investor confidence at home and abroad after years of unorthodox policymaking. Appointed on Friday, the 43-year old is the first woman at the helm of the country's central bank, taking over from Sahap Kavcioglu, who spearheaded President Tayyip Erdogan's rate-cutting drive against a backdrop of soaring inflation. Her new role makes her one of only around a dozen women currently serving as central bank governors around the world, including the likes of ECB President Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina and Serbia's Jorgovanka Tabakovic. Having spent all of her professional life outside Turkey, Erkan has no formal central banking experience, making her leanings for monetary policy unclear. Kathryn Wylde, president and CEO of Partnership for New York City, a nonprofit organization where Erkan once served as a board director, says Erkan was seen as "tough, smart, and effective."

Persons: Hafize Gaye Erkan, Sahap Kavcioglu, Tayyip Erdogan's, Christine Lagarde, Russian Central Bank Governor Elvira Nabiullina, Erkan, Goldman Sachs, Mark Carney, Mario Draghi, William Dudley, Goldman, Marsh McLennan, Kathryn Wylde, Wylde, Karin Strohecker, Jonathan Spicer, Hugh Lawson Organizations: Russian Central Bank Governor, Bogazici University, Harvard Business School's, Management, Research, Financial Engineering, Princeton University, Bank of Canada, Bank of England, New York Fed, First Republic Bank, Banking, Finance, New, Thomson Locations: Sahap, Istanbul, Turkey, New York City

☆ Russia should not take temporary control of foreign banks' units, central-bank governor says
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +2 min

President Vladimir Putin on Tuesday signed a decree placing the Russian assets of Finland's Fortum (FORTUM.HE) and Germany's Uniper (UN01.DE), which both operate power plants in Russia, under Moscow's control. "Such decisions should be made with very good reasons, connected to the stable functioning of the Russian economy," Nabiullina said when asked whether Russia could do the same with banks. Foreign banks have stepped in to take business from Russian lenders hit by sweeping Western sanctions imposed after Moscow despatched troops to Ukraine in February 2022. Austria's Raiffeisen Bank International (RBIV.VI), earned more than half of its profit last year from Russia. Reporting by Elena Fabrichnaya, Vladimir Soldatkin, Alexander Marrow and Jake Cordell; Editing by Sharon SingletonOur Standards: The Thomson Reuters Trust Principles.

☆ Russian inflation risks must ease to make room for rate cut - central bank
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +1 min

The central bank has become more wary of inflation this year, warning of the risks of a widening budget deficit, weaker rouble and labour shortages. Annual inflation decelerated sharply to 3.51% last month due to the high base effect. "In order to create space for further rate cuts, it is necessary that pro-inflationary risks decrease. "If we sacrifice price stability, we will not be able to protect our citizens and enterprises in the future." Reporting by Elena Fabrichnaya and Alexander Marrow Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

☆ Russia floats idea of paying foreign companies selling assets in bonds, not cash
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

MOSCOW, April 20 (Reuters) - Russia will work on a proposal to pay foreign companies selling assets in the country with central bank bonds tied to Russian reserves frozen abroad, instead of cash, the central bank said on Thursday, as a way to reduce rouble volatility. The Russian currency slumped to a more than one-year low this month, which traders and analysts blamed in part on foreign firms selling their Russian assets to local buyers, although the central bank has sought to play down the impact of such transactions. The finance ministry has said exit transactions should be carried out within strict limits under central bank control. Such a radical move would face several obstacles, primarily, according to Nabiullina, that linking bonds to frozen assets may need Russia to disclose the structure and location of its reserves. She added that "forcibly imposing" these bonds on companies, or having foreign regulators in other jurisdictions unfreeze Russian assets was unlikely to be possible.

☆ Russia building reserves in assets the West can't sanction - central bank chief
▼ + stars: | 2023-04-18 | by ( ) www.reuters.com time to read: 1 min

SummarySummary Companies This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, April 18 (Reuters) - Russian Central Bank Governor Elvira Nabiullina said on Tuesday Russia is building its international reserves with assets that cannot be targeted by Western sanctions, the TASS news agency reported. Western countries froze around $300 billion - or half - of Russia's international reserves after Moscow sent tens of thousands of troops into Ukraine last year. The central bank has previously said it considers gold, Chinese yuan and foreign currency held in cash as safe from possible further rounds of Western sanctions. Reporting by Reuters; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

Summary This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, March 2 (Reuters) - Russia's central bank said on Thursday that it would extend capital controls affecting foreign currency withdrawals and transfers abroad, warning that some economic sectors continued to feel the pinch from sanctions despite their resilience. The central bank and the government responded with sweeping capital controls, including a ban on sending foreign currency abroad to shore up the rouble and stabilise its banking sector. Russia's economy has proved remarkably resilient in the face of tough Western sanctions, but analysts still predict a 1.9% drop in economic output in 2023, after an estimated 2.1% slide in 2022. Those sanctioned last week have responded in a largely relaxed manner, with some saying disruption will be limited and others restricting foreign currency transactions or suspending euro trading on brokerage accounts.

☆ Yellen says Russian officials at G20 meeting 'complicit' in war atrocities
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, Feb 24 (Reuters) - U.S. Treasury Secretary Janet Yellen accused Russian officials attending a G20 finance leaders meeting on Friday of being "complicit" in atrocities in Russia's invasion of Ukraine and for the damage the war has caused to the global economy. In remarks to an opening session of the gathering on the first anniversary of the Russian invasion, Yellen called on G20 counterparts to "redouble their efforts to support Ukraine and restrict Russia's capacity to wage war." She said Russian President Vladimir Putin's "weaponisation" of food and energy has hurt not only Ukraine, but the global economy and especially developing countries. "I urge the Russian officials here at the G20 to understand that their continued work for the Kremlin makes them complicit in Putin’s atrocities," Yellen said. Russia was represented in the room by senior economic officials, according to a U.S. Treasury official.

☆ Analysis: Russian economy holding up but the road back to prosperity may be long
▼ + stars: | 2023-02-23 | by ( Alexander Marrow | ) www.reuters.com time to read: +6 min

"The Russian economy and system of governance proved to be much stronger than the West supposed," President Vladimir Putin told Russia's political, military and business elite this week. 'GUNS NOT BUTTER'He also argued for sustainable domestic development and a self-sufficient economy, recalling a criticism levelled against Soviet leaders so focused on military spending they ignored people's welfare. But Russia is ramping up military spending, and diverting funds from hospitals and schools will ultimately hamper the development of civilian economic infrastructure. Prokopenko, who also highlighted the opportunity cost to the economy, said Russia's financial leadership had become used to navigating crises. Putin can be proud of his 'Fortress Russia' that his financial leadership built for him," she said.

☆ Russia says its economy did better than expected, one year into the Ukraine war. But experts say there's a red flag behind the announcement.
▼ + stars: | 2023-02-23 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

According to Russia's federal statistics service, the country's GDP contracted by 2.1% in 2022. However, Russia stopped publishing some key economic data last year, throwing up a red flag. While this contraction reversed a 5.6% GDP growth in 2021, it did far better than an 8.8% to 12.4% contraction that Russia's economy ministry projected in April 2022. The war in Ukraine triggered heightened concerns over issues related to energy security, particularly about natural gas exports — which Europe was reliant on. The EU's ban on Russian oil imports from December sent countries rushing to load up before the embargo kicked in, which helped prop up Russia's energy coffers.

☆ Russian central bank holds key rate at 7.5%, gives hawkish signal
▼ + stars: | 2023-02-10 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

The Bank of Russia kept its year-end inflation forecast at 5.0-7.0%, retaining hopes that it can return inflation to its 4% target in 2024. "If pro-inflation risks intensify, the Bank of Russia will consider the necessity of a key rate increase at its upcoming meetings," the bank said in a statement. The bank now sees its key rate in the 7.0%-9.0% range this year, up from 6.5%-8.5% in the previous forecast. The bank adjusted its 2023 GDP forecast to between growth of 1.0% and a contraction of 1.0%, from a 1.0%-4.0% decline previously. That has implications for Russia's 2023 budget, which is currently based on the $70.10 price.

☆ Russian central bank governor on rates, inflation, GDP and oil
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +4 min

Feb 10 (Reuters) - Russian Central Bank Governor Elvira Nabiullina and her deputy Alexei Zabotkin gave a news conference on Friday after the regulator held its key interest rate at 7.5%. ZABOTKIN ON INFLATION IN 2023:"The dynamics of annual inflation this year will be very much determined by the months of last year dropping out of the calculations. We had very high monthly values in March and April, and when they drop out of the calculations, respectively, there will be a very rapid decline in annual inflation. As they go out of the calculations, respectively, the annual inflation rate will increase, and by the end of the year we expect it to be in the range of 5-7%." NABIULLINA ON RUSSIA'S GDP FORECASTS"We have improved the forecast for GDP this year.

☆ Putin's government is reportedly pressuring the Russian central bank to stop with gloomy forecasts and give more 'upbeat' updates about its economy
▼ + stars: | 2023-02-08 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

It's pushing the bank to give more positive outlooks for the country's economy, per Bloomberg. The central bank has been candid about Russia's economic pressure amid the war in Ukraine. Through it all, the Russian central bank has been candid about its assessment of the country's economy, which at times stood at odds with more bullish statements from the Kremlin. But that may soon change — Russian officials are putting pressure on the country's central bank to give more "upbeat" assessments about the country's economy, Bloomberg reported on Tuesday, citing people familiar with internal deliberations. Senior government officials have criticized the central bank for mishandling market expectations and for giving forecasts that were too pessimistic and alarmist, Bloomberg reported.

☆ Exclusive: Russia likely to buy yuan on FX market in 2023 - sources
▼ + stars: | 2022-12-22 | by ( Elena Fabrichnaya | ) www.reuters.com time to read: +4 min

"The central bank can currently now buy yuan," a banking source close to monetary authorities told Reuters. But the bank would not do so while the government continued, as now, to spend its oil and gas revenues. "(However), if next year budget revenues from the export of oil and gas exceed 8 trillion roubles, then the central bank will buy yuan," that source added. The central bank and finance ministry did not respond to requests for comment. Central Bank Governor Elvira Nabiullina last week said Russia has sufficient funds in yuan and gold.

☆ Russia's central bank governor Nabiullina speaks after holding rates at 7.5%
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +5 min

Dec 16 (Reuters) - Russian Central Bank Governor Elvira Nabiullina and her deputy Alexei Zabotkin gave a news conference after the central bank left its key rate unchanged at 7.5% on Friday. These funds will return to the Russian banking sector as confidence in macroeconomic stability and in price stability grows. We believe this transaction will ensure the development of the banking sector without the participation of the central bank as an owner. NABIULLINA ON BANKING SECTOR PERFORMANCEAs for 2022 financial results, it is premature to give specific estimates, but I can say that the banking sector has reduced its losses, compared to the level in the middle of the summer. Many banks have reached profitability - most banks have reached profitability, therefore we expect the banking sector to be profitable in 2023.

☆ Moscow is now the fourth largest offshore trading hub for the Chinese yuan, as sanctions spur Russia's dash to an alternative currency
▼ + stars: | 2022-11-29 | by ( ) www.businessinsider.com time to read: +3 min

Russia has been accelerating its use of the Chinese yuan to counter sweeping Western sanctions. Bloomberg Creative/Getty ImagesRussia is now the fourth-largest user of the Chinese yuan — after Hong Kong, the UK, and Singapore. The Chinese yuan was the fifth most commonly used currency for global payments in October 2022. Russia, whose access to the US dollar was curtailed due to sweeping sanctions over the Ukraine invasion, has now become a big user of the Chinese yuan for trade. Some Russian companies, such as energy giant Rosneft, have also issued bonds denominated in the Chinese yuan to raise funds.

[1/2] Chinese Yuan and U.S. dollar banknotes are seen behind illuminated stock graph in this illustration taken February 10, 2020. His contract manufacturing business with Russia has been small in the past, but now he's preparing to invest in warehousing there. He sees a win-win situation in Chinese exporters reducing their currency risks and payment becoming more convenient for Russian buyers. The U.S. Treasury declined to comment on the yuan's growing presence in Russia. ($1 = 7.2074 Chinese yuan renminbi)Editing by Vidya Ranganathan and Pravin CharOur Standards: The Thomson Reuters Trust Principles.

☆ Russia's economy has finally fallen into recession, 8 months after it invaded Ukraine
▼ + stars: | 2022-11-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +2 min

Russia's GDP fell 4% on-year in the third quarter of 2022 — its second straight quarterly decline. This followed a 4.1% year-on-year decline in its second-quarter GDP — meaning the country has fallen into a technical recession after two straight quarterly contractions. Nabiullina's assessment of the economy followed months of intensifying sanctions against Russia over its invasion of Ukraine. And while firm energy prices had propped up Russia's economy for a while, the tide seems to be turning — in part, due to President Vladimir Putin's partial mobilization order that sent many fleeing the draft. Russia's central bank expects the country's economy to contract by 3% to 3.5% in 2022, Nabiullina said on Tuesday, according to an official transcript.

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