Russia is facing the possibility of spending its National Welfare Fund entirely by 2025, as highlighted in a report by the Central Bank. Should a global crisis erupt amid strained US-China relations, the bank may need to tap into the fund, depleting its liquid assets sooner than anticipated.
Photo: wikimedia.org by ИринаЯ, CC BY-SA 4.0
The Central Bank’s analysts foresee a global crisis triggered by high interest rates and financial market imbalances, exacerbated by the threat of deglobalization. Russia’s economy may suffer from plummeting energy prices, requiring government intervention to stabilize the situation.
The Central Bank suggests adjusting the budget rule to mitigate impending economic challenges, with inflation potentially reaching 13-15% and key interest rates soaring to 20-22% per annum. As of August 1, Russia’s National Welfare Fund held 4.665 trillion rubles in liquid assets out of a total 12.277 trillion rubles.
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The Central Bank of the Russian Federation, known as Bank of Russia, was established in 1990 and serves as the country’s central bank with functions outlined by the Constitution of Russia.