Subject The article addresses the seigniorage and the capital of the Central Bank of the Russian Federation. Objectives The purpose of the article is to show the mechanism and sources of the Bank of Russia capital formation, its 'excess' and the need for greater withdrawal of the seigniorage to the Federal budget. Methods The methodology rests on formal logic, systems approach and statistical data analysis. Results The main source of capital formation of the Central Bank of the Russian Federation is seigniorage, and most of it does not take the form of profit, therefore, is not payable as revenue to the Federal budget. The paper presents the composition and structure of the capital of the Central Bank of the Russian Federation. It proves that the Bank of Russia can effectively and efficiently continue performing its functions under the conditions of its capital reduction. I developed a financial and macroeconomic mechanism to withdraw a portion of capital of the Central Bank of the Russian Federation to the Federal budget. Conclusions Despite the lack of the seigniorage concept in the modern banking lexicon and monetary regulation practice, the economic phenomenon still exists and is inherent in the fiduciary money issued by central (issuing) banks. The external form of such seigniorage is not only profit, but also the revaluation of central bank's assets.
Keywords: seigniorage, issue bank, international reserves, Federal budget, macroeconomic balance
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