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2025-10-30 10:43:54
[Russia Plans to Reduce Foreign Exchange Sales by its National Wealth Fund in 2026] 1. Russian Central Bank Governor Nabiullina stated on Wednesday that Russia plans to reduce the scale of its national wealth fund's foreign exchange sales in 2026. This move could weaken support for the ruble exchange rate. 2. Core Decision: Russia will reduce the scale of foreign exchange sales by its emergency-use national wealth fund in 2026. 3. Background and Reasons for the Decision: The central bank governor pointed out that the main purpose of current foreign exchange sales is to fill the budget deficit. The 2026 budget, currently under review, is expected to be more balanced, reducing the need for foreign exchange sales to cover the deficit. Western sanctions have affected Russia's import and export trade, exacerbating the volatility of the ruble exchange rate. 4. Current Operations and Future Direction: Throughout 2025, the Russian central bank has been conducting net foreign exchange sales, partly for the National Wealth Fund and partly to intervene in the market to smooth out volatility. The central bank emphasizes that the future ruble exchange rate should be determined by market forces.
