British monthly magazine The Banker has voted the governor of Russia’s main financial institution as Central Banker of 2017, after the Russian economist halved inflation in 2016. EURACTIV’s partner Milano Finanza reports.
Elvira Nabiullina has been voted the best president of a European central bank by British financial magazine The Banker, after the Russian governor’s “productive work” in 2016 when faced with tough economic conditions and a weakening rouble.
The monthly said that Nabiullina had managed to manoeuvre her country through a period affected by a devalued currency and banking sector problems, adding that “the strong hand of Elvira Nabiullina helped to lead the country out of difficulty”.
At the beginning of 2016, inflation stood at around 12.9%, Russia’s highest rate since 2008. According to the International Monetary Fund (IMF), inflation had not fallen below 6.1% since 1992.
However, thanks to the efforts of Nabiullina, the figure dropped below the magic 6% figure by the end of the year. Russian statistical agency Rosstat said that at the close of 2016 inflation was just 5.4%.
The Central Bank’s governor has consistently stated that reducing inflation is the best way to improve economic growth in Russia.
According to The Banker, this marked decline inflation should also lead to a decrease in interest rates. Last year, the bank’s reference rate fell by one percentage point to 10% and the rouble rallied after Moscow brokered a deal with the OPEC countries.
The agreement means that Russia will cut its production of crude oil and Moscow pledged to scale back output by 300,000 barrels a day.
Nabiullina succeeds Bank of England governor Mark Carney, who scooped the magazine’s award in 2016. Canadian-born Carney came in for particular criticism from the UK’s political class this year for his views on the country’s decision to leave the EU.
But the governor has also won admiration from many for his level-headed approach to the situation and his decision to not resign was met with approval as the UK rides out a period of financial uncertainty triggered by the Brexit vote.
Nabiullina previously served as Economic Development and then Trade Minister between 2007 and 2012 before advising President Vladimir Putin on economic matters until June 2013, when she took up her current position.