The money supply in Russia keeps growing, reports the Ukrainian Foreign Intelligence
In 2024, the total amount of cash in circulation and funds in bank accounts across all client categories in Russia reached $1.3 trillion, marking a 19.2% increase over the year. The volume of rubles in the Russian economy grew by 19.4% in 2023 and by 24.4% in 2022. Since 2022, the total amount of Russian currency has surged by 77%.
One of the key reasons for this increase is the issuance of new rubles. However, this newly printed money is not backed by goods, as imports have declined from $301 billion in 2021 to $294 billion in 2024, and growth in civilian sectors remains weak.
Additionally, to cover the budget deficit, Russia’s Ministry of Finance ramped up the issuance of federal loan bonds, increasing placements from $31.2 billion in 2023 to $48 billion in 2024.
Other contributors to the expanding money supply include the rise in lending—$5.5 trillion in loans issued between 2022 and 2024—and the depletion of Russia’s National Wealth Fund, which has shrunk by 57% since February 2022.
The growing money supply, fueled by ruble issuance, highlights the Kremlin's lack of viable tools to cover the federal budget deficit and finance its war efforts.
