The Russian Central Lady … Who is Elvira Nabiulina, the most powerful woman in the history of Russia?

After 80 days of the Russo-Ukrainian war, the world discovered an iron woman who led the war with great success, and she was named the most expensive woman in the history of Russia.

Russian President Vladimir Putin has given her full powers.

It is Elvira Nabiullina or “Lady Central” who instructed Putin to confront the sanctions imposed by the European Union and America, which are described as “the most severe” in the history of Western sanctions. Nabiullina was indeed responsible.

The play in the Russo-Ukrainian war is between adults and with adults, as military actions in it are intertwined with economic elements, and have yielded a difficult comparison.

But it showed the world a financial figure facing Western sanctions with cleverness and ferocity, as the trump card led to the “ruble settlement order”, which succeeded in preventing the collapse of the Russian financial system, which caused his sharp recovery to pre-war. levels.

What is the role of Elvira Nabiulina in the Ukrainian war?

Elvira Nabiullina, as a staunch supporter of President Vladimir Putin, first accepted the post of governor of the Russian Central Bank in 2013.

She led Moscow safely through many economic crises and laid the foundation for the reputation of the Russian economic and financial system.

Moscow was surprised by the size of the sanctions, but also surprised the West by reaffirming the right of Russian companies to pay their debts to Western financial entities in local currency, not dollars, which means that Western countries and companies by the rubles will be affected. depreciation more as a result of the sanctions, as this measure allows to reduce withdrawals from Russia’s foreign exchange reserves.

Elvira Nabiulina’s decisions .. a remarkable superiority

Elvira Nabiullina’s decisions in this crisis and her success in rescuing the Russian economy were not a product of the moment.

In 2014, Russia faced a sharp drop in the ruble as a result of Western sanctions over the Crimean incident, coupled with a sharp drop in global oil prices, which plunged the Russian economy into a crisis.

In the next two years, Nabiullina encouraged the establishment of Russia’s floating exchange rate system, which eased pressure on Russia’s foreign exchange reserves, lowered the inflation rate to the lowest level after the dissolution of the Soviet Union, and boosted the recovery of the Russian economy. gave. .

During the period between 2013 and 2017, Nabiullina closed about 300 financial institutions, but most of these institutions were later merged under other names, due to their failure.

In 2017, the British magazine “The Banker” considered it the best central banking province in Europe, and the International Monetary Fund invited it to deliver one of its most important annual lectures in 2018.

She was also selected by Forbes magazine as one of the 100 most powerful women in the world.

Swift .. a big test

After many Russian banks were kicked out of the SWIFT system, sanctions were also imposed by America against the Russian Central Bank, and assets held abroad were frozen, the Russians panicked and rushed to the bank and tried to oust them. to get money out before the ruble falls further.

In response to this situation, Nabiullina began to solve the problem “radically”, by rapidly raising the central bank’s benchmark interest rate from 9.5% to 20%, hoping to discourage people from withdrawing money from the bank. .

Then the Russian Central Bank announced the release of 733 billion rubles of emergency reserve funds, which allows banks to delay revaluation of all assets to keep asset values ​​at high levels.

This series of measures, taken by the Central Bank of Russia, are all aimed at preserving the solvency of banks and preventing large-scale bank outflows due to the collapse of the ruble. Thereafter, the momentum of the ruble’s devaluation temporarily stabilized.

Inflation is a war within a war

After that, Napolina began to deal with inflation. Sanctions imposed by Western countries prevented her from selling Russian reserves abroad to support the ruble, so she thought differently and demanded that Russian companies pay 80% of the ruble in foreign exchange buying.

In addition, it announced capital controls to curb domestic capital outflows, including restrictions on the amount residents can withdraw in dollars from foreign currency bank accounts, and restrictions on foreign clients’ withdrawals in certain foreign currencies. Russians need to transfer money to their foreign currency. bank accounts The amount of foreign currency that can be withdrawn during the month is also limited to $ 10,000. Russian brokers do not allow foreign clients to sell securities.

Economic deterrent

In the face of increasing sanctions imposed by Western countries, Nabiullina resorted directly to the “deterrent measure”, which linked the ruble and the Russian Energy Clearing Corporation. On the same day, Putin announced that the supply of natural gas to “unfriendly countries” would be settled in rubles, and the Central Bank asked the Russian government and the formulation of relevant specifications for the settlement of the ruble within a week.

Then the Russian Central Bank took another step to “link” the ruble to gold and announced that from March 28 to June 30, it would buy gold at a fixed rate of 5,000 rubles per gram, in violation of restrictions on bank liquidity. After Russia sacrificed its “deadly weapon”, the ruble has bounced back since March 24. As of April 8, it has broken its highest level since November last year.

The beautiful Battle of Stalingrad

Under Napolina’s leadership, Russia successfully waged a fierce battle to defend Stalingrad, “the most important and decisive battle of World War II” in the financial market.

Perhaps Nabiullina herself will not realize that the financial war in which she is participating has no effect between the United States and Russia, but it is a new starting point for a new global pattern, for third world countries it is undoubtedly a model that is study.

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