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The central bank of Russia added 300,000 troy ounces of gold to its reserves in March added. This increases the total size of its gold reserves to approximately 1,890 tons, which represents a market value of more than $80 billion at the current gold price. Along with the January and February purchases, the central bank has already added 50 tonnes to its reserves this year. That's similar to the pace at which she expanded her stock over the past three years.
Due to a decrease in the Gold price In dollar terms, the total value of gold on the balance sheet has fallen slightly, but the precious metal still accounts for 17.5% of total reserves. By comparison, when the financial crisis erupted in 2008, the central bank had only 2.5% of its reserves in precious metals. Since then, Russia has added more than 1,300 tonnes to its stock. Since 2014, purchases have been kicked into high gear, possibly due to the West's economic sanctions.
Russia sees the precious metal as a 100% hedge against political risk, as it cannot be subject to economic sanctions. It is also a hedge against a depreciation of foreign exchange reserves or against a depreciation of one's own currency. Since 2006, the central bank has been valuing the precious metal at the market price, which means that the value of this reserve increases as the price of gold rises. In this way, it can absorb a depreciation of foreign exchange reserves.
In recent years, several central banks have bought precious metals or brought them closer to home. In recent years, the Netherlands, Germany, Austria, Hungary and Turkey have withdrawn part of their gold reserves from the United States and the United Kingdom, while China and Russia have lost hundreds of tonnes in recent years. Buy gold as a form of diversification. As far as we know, Russia keeps her entire stock in her own country, in a safe of which photos were recently published.
Russia added 300,000 troy ounces of reserves in March
Russia has been buying gold since 2006
