The latest report of the Central Bank of Russia shows that Russia’s gold reserves now exceed the US dollar for the first time. Russian President Vladimir Putin cancelled Russia’s main policies to reduce Russia’s economic exposure to the US dollar under severe sanctions.
Russia now has more gold reserves than the U.S. dollar
According to a report released by the Bank of Russia this week, it is reported that gold surpassed the US dollar for the first time in Russia’s US$583 billion reserves. The country has been increasing its international reserves in recent years.
The report shows that as of June 30, 2020, gold accounted for 23% of the central bank’s reserves. Bloomberg quoted the latest data and breakdown. The share of the U.S. dollar in reserves has fallen from over 40% in 2018 to 22%. The euro accounts for about one-third of total assets, followed by gold, which is now the second largest component. About 12% is RMB.
The publication added that between June 2019 and June 2020, metal prices rose by 26%, driving an increase in the composition of reserves. The report also shows that during this period, the central bank purchased $4.3 billion worth of gold.
After spending more than US$40 billion on gold purchases in the past five years, Russia has become the world’s largest gold buyer. The Central Bank said it stopped buying gold in the first half of last year to encourage miners and banks to increase exports and bring foreign exchange into the country.
Russian President Vladimir Putin (Vladimir Putin) has cancelled his country’s main policy, the dollar, to reduce the Russian economy’s exposure to dollar assets. In the context of deteriorating relations with Washington, years of efforts have been made to reduce the vulnerability of Russia’s sanctions against the United States.
News.Bitcoin.com reported in August last year that Russia and China have been cooperating to reduce their dependence on the US dollar, and that the US dollar trade settlement between the two countries has fallen below 50%.
What do you think of Russia’s efforts to get rid of the dollar? Let us know in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Bank of Russia, Bloomberg
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