By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News, November 28, 2022
Russia’s international reserves as of November 18 amounted to $ 568.8 billion, reported the Bank of Russia. On November 11, they were worth $ 552.1 billion. For the week the reserves increased by $ 16.7 billion.
International reserves have been growing since November 4, when their volume amounted to $ 541.6 billion. From October 28 ($ 550 billion) to November 4, international reserves of the Russian Federation have dropped $ 8.5 billion.
After the introduction of Western sanctions against the Bank of Russia, more than $ 300 billion of the $ 640 billion of the central bank’s gold and foreign exchange reserves were frozen.
International reserves are highly liquid financial assets held by the Bank of Russia and the Government of the Russian Federation. They are made of assets in foreign currency, monetary gold, special drawing rights (SDR, special drawing rights, the unit of account used by the International Monetary Fund, IMF), a reserve position in the IMF and other reserve assets.
The Bank of Russia has been actively buying gold since January 2013 (958 tonnes of gold in Q4 2012) and was the leader among the world’s central banks in terms of purchases since this time. Russian has more than doubled the amount of gold in reserves. Also, the Bank of Russia was the largest consumer of gold in the country. It purchased about 45% of the gold production from Russian mining sites in 2019. According to the Russian Union of Gold Producers, at the end of 2019, compared to the previous year, gold production in Russia increased by 12% to 367,952 kg.
Read also : How to invest in gold
In the third quarter of 2022, the Russian central bank was holding 2,298.53 tonnes of gold in its reserves. This amount was 2,301.64 tonnes in the fourth quarter of 2021. Russia had 2,271.16 tonnes of gold in the fourth quarter of 2019, according to data of the World Gold Council.
Russia and China have been working since 2013 on building an alternative international currency system, to end the dollar dominance. They are now working on implementing de-dollarization of the economies of the BRICS. Moscow and Beijing are expected to use their large gold reserves and mining potential to implement their program. India joined them in 2022, as New Delhi agreed to buy Russian oil in rubles and rupees.
Gold is a good asset in tough times. In almost any crisis, it shows growth. The yellow metal has always been a great hedge against inflation because it rises in price when the cost of living standards rises.
The exchange rate of dollar/ruble now is : 1.00 dollar for 61.53 rubles.
The exchange rate of euro/dollar now is : 1.00 euro for 1.03 dollar.
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© Copyright 2022 – Swann Collins, investor, writer and consultant in international affairs.
Eurasia Business News 