Russia admits it’s dumping USD and Euro for gold

Editor’s note: this article is sourced from RT so it’s straight from the Kremlin’s mouth  A message to other nations to follow suit perhaps?

Russia is taking steps to ensure that it protects itself from any future dollar or euro sanctions. Moscow boasts the world’s 5th biggest foreign exchange reserves and the 6th largest gold reserves. In total, the assets amount to over $1.5 trillion.

While the West is continuing to try and punish Russia via economic sanctions, the response of the Russian Central Bank has been to diversify away from the euro and dollar – and to buy up more gold.

As the geopolitical situation in Ukraine deteriorates, Russia is moving to protect itself from currency risks associated with the euro and the greenback.

In the first half of 2014, Russia’s Central Bank reduced its foreign currency reserves by 2.5 percent.

“Due to the worsening geopolitical situation, the Central Bank actively redistributed foreign exchange reserves, replacing US Treasury bonds with gold,” Alfa Bank’s chief economist, Natalya Orlova, told Kommersant.

Instead of buying euros and dollars, Russia’s Central Bank is eyeing the Chinese yuan and the Japanese yen.

Boosting currency swaps and bilateral payments with China and other strategic trade partners will continue to bypass the US dollar. Last week, Russia’s and China’s central banks have agreed to increase currency swaps.

Russia USD Euro Gold

Holding more of these currencies is a logical move for Russia, which has high trade volumes with both China and Japan. In 2013, trade turnover with China was close to $90 billion and over $33 billion with Japan.

Russia is fast increasing its gold stockpile and at the end of July, the total volume was worth more than $45 billion.

According to Yaroslav Lissovolik, chief economist for Deutsche Bank in Moscow, this is the best way for Russia to provide stability to its foreign exchange reserves.

“The fact that Russia has intensified its diversification process reflects the fact that a fairly high proportion of reserves were held in dollars and euros, while the share of gold was low,” Lissovolik told Kommersant.

Over the summer, reserves were added at the highest rate since the end of 2009. In June, Russia’s Central Bank added 54 tons of gold, which catapulted Russia ahead of China in terms of total gold, according to IMF data.

In the last decade, Russia has become the world’s top gold buyer, adding more than 600 tons to its vaults.

Other countries are also actively adding gold. In the last six months, Kazakhstan’s Central Bank increased its gold investment from 12 tons to 155.8 tons.

Conversely, developed countries such as the US, Germany, Italy, France, and Spain are keeping gold reserves at a stasis. Germany sold 2.9 tons of gold reserves from the Bundesbank but still remains the world’s # 2 holder of gold, after the USA.

Source: http://rt.com/business/180588-russia-central-bank-gold/

5 comments

  1. The best that I can say about this situation is for more nations to do what Russia is doing. It is far past due, to stop the on going corruption, with in the dollar and the banking systems pyamid scheme that holds people and nations in on going debt

  2. Leo is on the money here. Zionism, central banking and usury need to outlawed and zionists exiled to another uninhabited planet. Life would then be as it should in a paradise called earth without poverty, war, taxes, disease. Also the truth about et’s, man’s origin, life in the universe and the true history of earth and our solar system including life on neighboring planets and our moon could then known by all.

    Question I’d like answered is; is earth the only planet enslaved by zionism or are others around the universe plagued like us?

  3. “In the last decade, Russia has become the world’s top gold buyer, adding more than 600 tons to its vaults.”

    Seriously?
    So China and India now take a back seat to Russia buying Gold?
    Pretty poor reporting

  4. Putin: Sanctions against Russia harmful to world economy
    http://sgtreport.com/2014/08/putin-sanctions-against-russia-harmful-to-world-economy/#comment-545356

    BE SURE TO READ ALL COMMENTS ~ FOLLOW ALL LINKS in the above article

    • These sanctions on Russia are just an attemt at stopping the BRICS countries from dealing in their own currency and try to bully them in to using the US dollar. Mr Putin. Dont budge cos these Zionist Neocons must be stopped and the only way is by making Alliances around the world to do deals with in any currency except the dollar and the euro.

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