Russia's Central Bank urged to put ruble exchange rate under 'manual control'

Russia's Sberbank has recommended that the Central Bank take control of the country's exchange rate management, according to a report by The Moscow Times on August 21. Currently, the Central Bank purchases and sells foreign currency on behalf of the government, with oil and gas revenue used to buy foreign currency when prices exceed a set budget level and to sell foreign currency when prices fall below that level.

Isakov, a proponent of the proposed change, argues that the Central Bank should independently decide whether to buy or sell currency based on its goals for price and economic stability, similar to how the U.S. intervenes in foreign exchange markets when necessary. The ruble's exchange rate has been a significant issue for Russia's budget and major companies, with fluctuations impacting the country's financial stability in recent years.

The Russian government has acknowledged that the federal budget may face a significant deficit in 2026 due to a shortfall in oil and gas revenue. Ukrainian intelligence reports that the financial condition of medium and large Russian companies continues to deteriorate, reflecting growing imbalances in the corporate sector. As of February 24, 2026, about 300 companies in Russia were preparing to shut down, marking the first time that 74 Russian oblasts simultaneously faced serious financial difficulties.

The Russian economy has also been hit hard, with more than 17,000 companies posting losses and half of small businesses left without profits as of April 2026. In May 2026, Russia officially recorded its first GDP contraction in several years, and GDP growth fell nearly threefold. In response, Vladimir Putin moved to bring the Central Bank under full control.