HRF’s Weekly Financial Freedom Report #50

Russia | Draft Law Prevents ‘Foreign Agents’ From Accessing Money

A proposed Russian law seeks to prevent individuals and organizations labeled as foreign agents — a vague designation applied to critics of the state — from accessing money earned in Russia until their status is revoked. The legislation further mandates that all income derived from intellectual or creative activities, such as journalism, art, or research, be deposited into a ruble-denominated account. Courts would be empowered to seize these funds and transfer them to the state if deemed appropriate. This law threatens to cut off essential funding for journalists, human rights defenders, and NGOs. If enacted, the law would lay waste to any remnants of independent media, silence dissent, and further strangle civil society in a country already marked by severe state repression.

Mozambique | Unrest and Debt Crisis Push Frelimo to the Brink of Default

For more than half a century, the ruling Frelimo party has dominated Mozambique’s political landscape, but recent citizen unrest threatens their long-standing rule. Decades of financial mismanagement have left the regime increasingly reliant on the central bank for financing, doubling local currency debt since 2020. This leaves citizens struggling to keep pace with the rising cost of living. Disputed election results ignited violent protests as citizens desperate for social and financial reform pushed back against a government prioritizing debt servicing and the consolidation of power over its people. This collision of political and economic instability casts doubt on Frelimo’s ability to maintain political control while managing tight finances strained by a population demanding change.

Nigeria | Inflation Accelerates Increasing Food Insecurity

Nigeria’s inflation rate surged to 33.88% year-over-year in October, marking a new re-acceleration, according to the National Bureau of Statistics (NBS). Escalating prices for essentials like water, food, and electricity are making it increasingly difficult for Nigerian families to make ends meet. Acute malnutrition now threatens 5.4 million children and 800,000 pregnant women, and international organizations warn the number of Nigerians struggling with food insecurity will reach 33 million in the coming year. Irresponsible fiscal governance, restrictions on financial alternatives (like Bitcoin), and repression of dissenters only compound the crisis. 

Hong Kong | Crackdown on Pro-Democracy Activists
In Hong Kong, 45 pro-democracy activists are facing sentencing under Beijing’s national security law, which criminalizes dissent and gives authorities sweeping powers to silence opposition. These activists, including politicians and youth leaders, were charged with subversion for organizing an “unofficial” pro-democracy primary election in 2021. The crackdown extends beyond politics, though, as many activists face frozen bank accounts, limited access to financial services, and constant surveillance. This crackdown marks one of the harshest actions under the new law and highlights the rapid loss of freedoms promised under the “one country, two systems” framework.

Pakistan | Regulated VPNs Deepen Financial and Digital Repression

Pakistan’s military regime escalated Internet censorship by mandating that all Virtual Private Networks (VPNs) be registered with the state. It even requires users to submit personal details such as national identity card numbers and IP addresses. This crackdown erodes the privacy and freedoms VPNs offer, leaving citizens increasingly vulnerable to surveillance and control and stifling the flow of information. In a country where Internet disruptions and bans on platforms like X are commonplace, restricted VPN access could limit access to financial freedom tools like Bitcoin (which to some degree rely on access to on and off ramps like digital asset exchanges). The regime may further isolate Pakistanis from decentralized financial systems by tightening its grip on digital platforms and consolidating its control over information and financial activity.