Russia added gold to reserves again in May

Russia added 6.22 tonnes of gold to its reserves in May, further expanding its gold holdings to 2,190 tonnes. This is evident from New figures of the Russian Central Bank. Along with the $4 billion expansion of foreign exchange reserves, Russia's total reserves are approaching $500 billion. That's the highest level since early 2014, when the country fell into recession and oil and gas revenues fell.

Since the beginning of this year, Russia has already added 78 tonnes of gold to its reserves, more than other central banks currently Buy gold. Last year, the central bank even added a record amount of 274 tonnes to its gold reserves. This policy now seems to be bearing fruit, as the increase in Gold price the total value of the precious metal has risen more than $10 billion in a month.

Russia benefits from higher gold price

In May, the central bank valued its gold stock at $1,235.20 per troy ounce, while the price is approaching $1,400 per troy ounce at the time of writing. That would mean that its gold holdings are now worth more than $100 billion for the first time. The Russian central bank has periodically valued the precious metal at the current market price since 2006, as has the European Central Bank. This means that the central bank's balance sheet will strengthen as the price of gold rises.

'Role of the dollar needs to be reviewed'

Russian President Vladimir Putin recently said that the role of the dollar should be reviewed, as the United States increasingly uses its position of power to put pressure on other countries. He Said that confidence in the dollar is collapsing because of all the sanctions that the US government imposes on countries, companies and individuals.

Russia wants to become less dependent on the dollar and therefore seeks refuge in neutral gold. After all, the precious metal has no counterparty risk and can be traded worldwide. Also, in an extreme scenario, the gold stock can absorb the depreciation of the foreign exchange reserves.

It's not just Russia that adds gold to its reserves. Just recently, the World Gold Council well-known that central banks are buying gold at a record pace this year. Not since the beginning of this trend in 2010 have central banks bought as much precious metal as they do now.

Russian central bank's reserves approach $500 billion

Russia has been adding gold to its reserves for years