Russia to Reduce Foreign Currency Sales from National Wealth Fund in 2026
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Russia plans to scale back its foreign currency sales from the National Wealth Fund (NWF) in 2026, according to Central Bank Governor Elvira Nabiullina.
These sales have played a key role in supporting the Russian rouble and financing fiscal shortfalls in recent years. A reduction signals a shift toward a more self-sustaining budget position, with less reliance on reserve drawdowns to stabilize the domestic currency.
Nabiullina noted that the adjustment is driven by expectations of a more balanced federal budget for 2026, which is currently under parliamentary consideration. With improved fiscal dynamics, the need for liquidity injections from the NWF is expected to diminish.
The National Wealth Fund functions as a sovereign stabilization mechanism, providing budgetary support during revenue downturns. Reduced foreign exchange interventions may, however, lead to greater short-term volatility in the rouble, particularly if external pressures persist or energy revenues soften.
Market observers interpret the move as an attempt to normalize reserve operations and preserve the long-term sustainability of Russia's sovereign assets.
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