Ruble Strengthens: Russia boosts gold reserves by 18.7 tons in March alone

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MOSCOW – Foreign exchange reserves of the Central Bank of Russia had a significant boost of almost US $3.3 billion in April thanks to a policy of increasing foreign exchange funds and distancing the US dollar.

According to the latest data released by the regulator, it is indicated that the growth of 0.7% increased Russian international reserve funds to almost US $492 billion against US $487.8 billion at the end of March.

The country’s top monetary regulator is ready to use currency swaps and buybacks if it is necessary to calm markets during times of tension, Russian Central Bank chief Elvira Nabiullina told a conference in Moscow on Tuesday.

For Nabiullina, due to the economic and political risks that Russia is facing, the state is diversifying its foreign exchange reserves more than other countries, says the head of the Russian Central Bank.

In recent months, the share of the Chinese yuan has increased in the Russian Central Bank, while the share of the US dollar has been decreasing.

In March, the Russian Central Bank added about 18.7 tonnes of gold to the large stock of precious metal, reaching more than 2,170 tonnes – accounting for almost 18% of the country’s total foreign exchange reserves.

The international reserves of the State are highly liquid foreign assets, comprising inventories of monetary gold, foreign currencies and Special Drawing Right (SDR) assets, which are available to the Russian Central Bank and the government.

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Fears of the renewed trade war sparked by the China-US dispute are reinvigorating the gold market, according to a financial expert.

According to Phil Streible, senior market analyst at RJO Futures, there are also rising investor fears about the possibility of a cut in interest rates.

The price of this metal stabilized, being traded at US$1,297.60 per ounce.

After the news of the Chinese tariff retaliation against the Americans, the precious metal won on Monday (13) one percent and reached $ 1,303.26 – which is the highest value in more than a month.

The recovery of gold came as other metals (including silver, palladium and platinum), global stock markets and oil reacted with a downward movement.

Due to a pessimistic Federal Reserve and a lower US dollar, the yellow metal will continue to see a large demand in May, according to analyst Orchid Research.

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