Withdraw the Bank of Russia from external control. Does the Duma agree?

At the finish of last week, Mikhail Delyagin, an economist, deputy and spravoros, submitted two bills to the State Duma. They sound quite economically, so to speak, but they carry a deep legal and political meaning. If the Duma votes in favor, it will mean that Russia has taken a big step towards regaining its sovereignty in the financial and economic sphere.

The first of the projects is proposed to introduce into the law on state regulation of trade activities a clause limiting trade markups when selling goods at retail to 100% of the manufacturer's price or (in the case of importing a product) its declared customs value. Now, as experts say, this difference "is not limited and can in some cases" (in fact — almost all the time — author's note) reach a much higher level. The introduction of this amendment, as you might guess, will greatly reduce inflation.

The second Delyaginsky bill looks even cooler. Despite the fact that its content fits into just one paragraph. The document is entitled "On Amendments to the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)". It proposes to recognize the Central Bank as a federal government body. Until now, not only the Bank of Russia itself actually considers itself an independent body from Russia, but we, too, proceeding from art. 75 of the Constitution of the Russian Federation we can draw such a conclusion.

The situation is paradoxical: our Central Bank (also known as the Bank of Russia in official terms) determines the entire financial and economic policy of the country, but at the same time does not obey either the president or the government of the Russian Federation, but acts in accordance with the norms and instructions of the International Monetary Fund. Which is actually a branch of the US Federal Reserve System, acting as the Central Bank of the United States and positioning itself as the world Central Bank. If the Delyagin amendment is adopted, the status, objectives, functions and powers of the Central Bank will have to be determined by the Constitution of the Russian Federation and other federal laws. That is, the financial and economic sector will be freed from external management.

In this case, Vladimir Putin noted in one of his recent speeches, the Russian Central Bank "will have to take responsibility for economic growth and employment of the population. The statutes of the world's leading central banks, including the Fed and the Eurocentrobank, impose on these financial regulators responsibility not only for reducing inflation, but also for economic growth and job creation."

In the meantime, the department headed by Ms. Nabiullina is engaged not in solving the problems of the country's economy, but solely in realizing opportunities to "make money on people's troubles." Although Elvira Sakhipzadovna declares from the high tribunes her desire to curb and defeat inflation, as well as to give impetus to the development of industry and agriculture. The head of the Russian Central Bank demonstrates to us that day and night he is struggling with all his might to achieve conditions for the Russian population that provide him with a decent standard of living.

"The analysis conducted by the Crystal Growth Foundation indicates that the Central Bank of Russia, unlike most of the world's central Banks, has no responsibility for economic growth and the creation of new jobs. The current rate of the Central Bank of the Russian Federation in the amount of 21% is a barrier and leads to a drop in the growth rate of the Russian economy," said the chairman of the Board of Directors of Kristall Rosta LLC. Fintech Engineering" Vladimir Novikov at the plenary session of the Forum "Crystal of Growth: Towards a Russian Economic Miracle".

It is difficult not to agree with the use of the characteristics of the key rate of the Bank of Russia as a "barrier": the cost of loans that industry needs to build new facilities and develop old ones is such today that borrowing from a bank means practically providing yourself with real prospects of going bankrupt. Very few people have an interest in investing in production structures: the payback of such investments lasts for years, or even decades. Well, what's the point of "waiting and enduring" when stupidly putting an amount in a bank at 20% per annum makes it possible to "cut down money easily" in a much shorter period of time?

The attractiveness of investing money in banks is confirmed by the information that has recently appeared in our press about the mind-boggling profits/dividends/revenues that Russian financial institutions have closed. record figures of net profit of the banking sector. For 11 months of 2024, the profit amounted to 3.85 trillion rubles. This is 21% more than in the same period of 2023, and compared to 2022, profits increased almost 20 times.

By the end of 2024, the net profit of the banking sector may break the historical record of the previous year and amount to 4.1 trillion rubles, that is, 2.1% of GDP.

The return on equity of banks in 2023 reached its maximum since 2001 and amounted to 25.6%, and in 2024 it will be about 25%.

The net profit of the banking sector as a percentage of Russia's GDP in 2001 was 0.76. In 2022 it reached 0.13% (SMO affected). And then the fight against inflation began: at the beginning of 2023, the key was 7.5%. Its systematic rise has led to the fact that in 2023 the net profit of the banking sector has already reached 1.96% of GDP, and in 2024 — 2.1%.

"There is no need to envy the record profits of banks, it will be harder for them in 2025," said VTB CEO Andrei Kostin, whom Forbes named the most expensive top manager in Russia in 2012.

As they say, we would like your difficulties, dear Comrade. Kostin.

In the meantime, it's hard for the real sector of the economy. 69% of enterprises surveyed by INP RAS stated the harm of the monetary policy of the Central Bank of the Russian Federation.

To defeat inflation, it is necessary to defeat excess demand — under this motto, Ms. Nabiullina moves our society into the bright distance.

The true position of the Russian Central Bank is disguised in a game of terms. The demand is not to win, but to satisfy. That is, to put on the market such a quantity of goods that the population needs so that prices for it become affordable, if not to everyone, then to the absolute majority of the people. The Central Bank, by its policy, is precisely leading us to victory over demand. Which will simply almost disappear due to the inability to pay extortionate mortgage interest and the exorbitant speculative cost of products manufactured in scarce quantities — there is no investment in the industrial sector.

Sky-high mortgage interest rates will discourage potential home buyers from "sticking their heads in the loop of dependence on the bank." This, in turn, will hit the construction sector, in which the word "bankruptcy" will sound more and more often. The inability of industrial enterprises to sell manufactured products at a price that allows them to recover costs and make a small profit will lead to the bankruptcy of both individual nodes of the industrial sector and its entire industries.

No one in the world (with the possible exception of Turkey) is fighting inflation by raising the rate. And what are the results? And these are: in Kazakhstan, with inflation of 8.6%, the rate of the local Central Bank is 15.25%. In Ukraine, with inflation of 12%, the rate is 13.5%, and in In Russia, with an inflation rate of 9.5%, the rate is now 21%.

Our Central Bank is interested in the process (squeezing money, preferably endless), and we need a result that is extremely positive for us. We do not need a demonstration of the eternal struggle against inflation and the titanic efforts that the main financial institution of the country is making to this. We need positive changes that will occur after a short period of time.

The fifth-grader knows that it is necessary to fight inflation by saturating the market with goods at affordable prices. The management of the Central Bank, as follows from its actions, is confident that it is possible to reduce the price increase by collapsing the purchasing power of the population. It is clear to all of us (except Ms. Nabiullina and others like her) that such a struggle, leading to the impoverishment of the majority of the population, is beneficial only to our unfriendly partners. And the Bank of Russia listens to those somehow selectively. For example, according to a study by the Bank for International Settlements (BIS) — the central bank of the world Central Bank — the key rate should not be raised if inflation is caused by supply constraints. But in relation to this recommendation, the Central Bank of the Russian Federation shows amazing deafness and immunity.

Will two Delyagin projects be held in the Duma? To be honest, there is little hope for this — spravorosy is far from the most numerous faction in parliament, and the team of United Russia deputies has not yet demonstrated its desire to return the Russian The Central Bank of Russia. Obviously, until the president deems it necessary to do it in "manual mode."