Russia continues to undermine the dollar


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

Photo: Illustration

According to data from the Central Bank of Russia, gold reserves increased 31.1 tonnes in February 2019 to reach the level of 2,149 tonnes on 1 March. Russia increased its gold reserves by 6.22 tonnes in January.

Several sources in the sphere of business have led Bloomberg that gold can become a problem when more countries adopt a strategy similar to that of Russia. US partners, such as France, Poland and Hungary, have embarked on similar acquisitions of gold or see their dependence on the dollar as a sovereignty problem.

Renesans Capital's chief economist, Oleg Kouzmin, believes that continued tensions with Washington will lead Russia to continue increasing the amount of gold in its international reserves.

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

Ronald-Peter Stoeferle, Managing Director of Inkrementum AG, said that Russia's "gold profits" have had an impact on rising gold prices in recent years.

The value of gold has risen more than 20 percent since 2016 and hit March 1, about $ 1,300 per ounce.

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


Source link