Gold accounts for 23% of Russia's total foreign exchange reserves
Gold prices are fluctuating erratically and unpredictably. Meanwhile, American and German analysts admit that Russia's gold reserve strategy offers promising opportunities. However, in reality, Russia has temporarily stopped buying gold and is waiting for the right time.
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| Russia's gold reserve strategy is highly appreciated by many countries. Illustrative photo |
The panic in the gold market has temporarily subsided, but this trend will not last long, economists say. Central banks, including the Bank of Russia, which rely on precious metals, just need to wait for the right moment.
Over the years, Russia has been increasing its gold reserves. And according to many sources, gold accounts for 23% of Russia's total foreign exchange reserves. According to US experts, Russia will resume and increase investment in gold after the COVID-19 pandemic ends, and gold prices will return to acceptable levels.
In fact, Russia has not bought any more gold since April 2020, analysts at US investment firm VanEck point out.
“Why did we stop buying gold? There is a huge demand for gold on the world market right now, and this could lead to increased export revenues and foreign currency flows into the Russian market. We see that exporters are taking advantage of this situation,” explained Elvira Nabiullina, Governor of the Central Bank of Russia, emphasizing that Russia’s gold reserves are at a moderate level.