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The central bank of Russia wants more gold and foreign currency to add to its reserves add. Between July 7 and August 5, the central bank will increase its reserves by 13.5 billion roubles a day ($184.25 million), the central bank announced on Monday. It was the first time that the central bank explicitly mentioned buying gold in its monthly update. She is also adding more reserves this month. In the coming period, the central bank will convert 296 billion rubles to reserves. In the previous period, from June 7 to July 6, it was 220.9 billion rubles.
Russia has benefited in recent months from higher prices for oil and gas, its main export products. This will allow the central bank to further expand its reserves. In May, the value of reserves rose to a new record of more than $600 billion. Of that, $139.5 billion - almost a quarter - is made up of the gold supply. The $465.7 billion in foreign exchange reserves consist mainly of euros, dollars and Chinese yuan.
Russia wants to further expand reserves, including gold
The central bank Stopped at the beginning of the corona crisis with Buy gold. One possible explanation for this was the fall in the price of oil, which reduced the value of exports. Another explanation is that Russia wanted to make domestic gold mining production available to the world market. Due to the corona crisis, the demand for gold among Western investors increased considerably. To meet that demand, Russia exported a lot of precious metals to the United Kingdom during the corona crisis, where the largest gold ETFs keep their physical stocks.
The news from the central bank suggests that Russia is planning to resume its gold buying program. The central bank buys the precious metal from domestic banks, which in turn buy it from the Russian gold mining sector. In recent years, the central bank has bought up a substantial part of Russia's gold mining production and added it to its gold vault.
This contribution was made from Geotrendlines
