Thursday , January 28 2021

Russia continues to undermine the dollar

Russia continues to accelerate in the diversification of its international reserves, reports Bloomberg.

Picture: Illustration

According to Russian Central Bank data, 31.1 tonnes of gold reserves increased in February 2019 to reach 2.149 tonnes on March 1. Russia increased its reserves by 6.22 tonnes in January.

Several sources in the business field have led to Bloomberg that gold can become a problem when more countries adopt a similar strategy to that in Russia. US partners like France, Poland and Hungary have already started buying similar gold or considering their dependence on the dollar as a sovereignty problem.

Capital chief economist Renesans, Oleg Kouzmin, believes that ongoing tensions with Washington will lead Russia to continue to increase the amount of gold in its international funds.

We can already talk about some achievements that the Central Bank has achieved in this area.

Ronald-Peter Stoeferle, managing director of Inkrementum AG, said Russia's "golden profit" had an impact on the rise in global gold prices in recent years.

Gold rose by over 20 per cent since 2016 and reached 1 March, about $ 1,300 per ounce.

In the last month, economists have estimated that the Central Bank of Russia has made a net income of ten billion dollars at least thanks to an increase in the price of its assets in gold.

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