Support The Moscow Times!

Russia’s Gold Reserves Hit Five-Year High

Pixabay

Russia's forex and gold reserves were at $487.8 billion as of April 1 2019, according to figures from the Central Bank of Russia (CBR), the highest since March 2014.

Reserves are now at the level they had reached before the sanctions regime started following Russia’s annexation of Crimea in 2014. As reported by bne IntelliNews, the macro stability of the first quarter of 2019 has allowed the CBR to come back to its target of building gross international reserves (GIR) to over $500 billion.


					Russia's Fx/gold reserves reached $487.8bn as of April 1 2019, according to the data by the Central Bank of Russia (CBR).					 					bne IntelliNews
Russia's Fx/gold reserves reached $487.8bn as of April 1 2019, according to the data by the Central Bank of Russia (CBR). bne IntelliNews

The $500 billion target was set by the CBR in 2015, as the currency market stabilised after extreme volatility in 2014, and was reiterated by CBR Governor Elvira Nabiullina until the spring of 2018. But in September 2018, along with front-loading the key interest rate by 25 basis points to 7.5 percent the CBR halted purchases of foreign currency on the markets as ruble came under increased pressure from possible toughening of sanctions.

Bloomberg reported in 2015 that setting the target of $500 billion was a direct “recommendation” from President Vladimir Putin, who has long been following a “fiscal fortress” policy of high reserves and low external debt, but has been resisted by central bankers.

In the meantime the structure of GIR changed, as the CBR has boosted its gold reserves and cut the U.S. dollar share of its currency holdings. In 2018, the CBR bought a record 274.3 metric tons of gold, bringing its share of GIR to about 19 percent and accounting for 42 percent of the gold purchases of all central banks last year. At the same time the share of the U.S. dollar in GIR was cut from 43.7 percent to about 20 percent.

This article first appeared in bne IntelliNews.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more