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2025-10-29 17:37:50
[Russia Launches Surprise Move: Significant Cut in Foreign Exchange Sales Next Year Shakes Ruble Foundation] ⑴ Russian Central Bank Governor Nabiullina announced on Wednesday that the country will reduce the scale of foreign exchange sales by the National Wealth Fund in 2026. ⑵ This move will directly weaken official support for the ruble exchange rate and may affect currency stability. ⑶ Foreign exchange sales are mainly used to cover budget deficits, and the more balanced 2026 budget, currently under parliamentary review, is the main reason for the reduction. ⑷ The Central Bank of Russia is responsible for both foreign exchange sales by the Fiscal Reserve Fund and intervention operations to smooth exchange rate fluctuations. ⑸ The bank maintained a net selling of foreign exchange throughout 2025, continuously providing liquidity to the market. ⑹ Central bank foreign exchange sales, coupled with high interest rates and slowing imports, jointly supported the ruble's rebound at the beginning of this year and maintained its strong performance. ⑺ Nabiullina pointed out that Western sanctions have affected import and export flows, leading to a significant increase in ruble exchange rate volatility. ⑻ She emphasized that the ruble exchange rate should be market-driven, balancing the interests of different market participants.
