Central Bank of Russia

The Central Bank of the Russian Federation (Russian: Центральный банк Российской Федерации), commonly known as the Bank of Russia (Russian: Банк России), also called the Central Bank of Russia (CBR), is the central bank of the Russian Federation. The bank was established on 13 July 1990. It traces its beginnings to the State Bank of the Russian Empire established in 1860.

The bank is headquartered on Neglinnaya Street in Moscow. Its functions are described in the Constitution of Russia (Article 75), as well as in federal law.

Shortly after declaring sovereignty in June 1990, the Russian SFSR decreed the creation of a central bank under the leadership of Georgy Matyukhin. Matyukhin commandeered Russian branches of the State Bank of the USSR and brought them under the control of the Bank of the RSFSR. A comprehensive central bank statute was passed in December 1990 and the bank adopted a charter in June 1991. A remnant of the State Bank continued to operate alongside it until it was dissolved along with the Soviet Union in December 1991, and the Bank of Russia assumed its remaining business.

Since 1992, the Bank of Russia began to buy and sell foreign currency on the foreign exchange market created by it, establish and publish the official exchange rates of foreign currencies against the ruble.

In 2006 capital controls mandate by the RCB began to ease, as confidence in the ruble mounted from the depths of the 1990s. Legislation continued to ease through the 2010s. The 2022 Russian invasion of Ukraine reversed this trend.

In August 2023 the RCB raised the primary interest rate from 8.5% to 12%. At the same time president Vladimir Putin was said to be considering capital controls on exporters from Russia, who would have to convert 80% of foreign funds to the ruble. This would be done in order artificially to increase demand for the domestic currency. In April 2024 this measure was prolonged for another year, from the original term of six months. It was reported that "43 major Russian commodities groups" were affected. At the time the ruble was trading at 93 to the US dollar.

In October 2023 western firms that wanted to exit the Russian economy were doubly fleeced when they were told about extraordinary capital controls. On 15 July 2024 the CBRF closed the statistics of the over-the-counter currency market; at the time it was under pressure from international sanctions over the Russian invasion of Ukraine.

On 26 July 2024 the CBRF hiked its primary interest rate by 200 basis points to 18%. In 2024 Q2, core inflation increased to 9.2% in annualised terms and labour shortages continued to grow.