Respite for Putin's Banker After Threats of Collapse

Elvira Nabiullina, often referred to as Putin's banker, faces the daunting task of steering Russia's economy through turbulent times. As the head of the Central Bank since 2013, she is at the forefront of managing the nation's increasingly strained financial landscape.

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She is Putin's banker. Central Bank Governor Elvira Nabiullina is trying to save the Russian economy from ruin.

The recent decision to lower the key interest rate by 0.5 percentage points to 14.5% reflects the ongoing efforts to stimulate the economy, though it remains a high rate compared to international benchmarks. Furthermore, the strategic sale of gold from the nation's reserves signals a proactive approach to covering budget deficits.

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Elvira Nabiullina has a difficult situation, to say the least.

While the current geopolitical climate, particularly the conflict in Iran, has led to elevated oil prices, providing a much-needed respite, the underlying fragility of the Russian banking sector cannot be ignored. The potential for instability within these institutions poses a persistent threat, with the specter of a wider economic collapse looming.

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As a comparison, the Riksbank's interest rate is 1.75 percent.

From our perspective at Svenska Dagbladet, the situation underscores the complex interplay of global events and national economic policy. The resilience of the Russian economy, despite external pressures, is a testament to its unique mechanisms, though the long-term consequences of these measures remain to be seen.

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In November last year, she also began selling gold from the gold reserve to cover the country's budget deficit.