Russia's gold reserves have fallen to their lowest level since January 2020. As of August 1, the Central Bank of Russia held 73.2 million ounces of gold, 1.6 million ounces less than at the beginning of the year. Bloomberg reports, according to UNN.
Details
According to data published by the central bank on Thursday, Russia's bullion reserves had fallen by 1.6 million ounces since the beginning of the year, to 73.2 million ounces as of August 1. This is the lowest figure since January 2020
As a result, according to the available data, the value of the bank's gold reserves decreased by $33.7 billion over seven months.
The Bank of Russia was once the world's largest sovereign gold buyer, purchasing a significant share of the country's production before suspending acquisitions in early 2020. Two years later, its pledge to resume purchases helped absorb some of the supplies that the country was trying to export amid sanctions imposed over its invasion of Ukraine in February 2022, but the bank never resumed large-scale purchases
According to the publication, the central bank began reducing its gold reserves last year as the Ministry of Finance "sold precious metals and foreign currency from the National Wealth Fund to help cover the budget deficit caused by declining energy revenues."
Under the so-called mirror mechanism, the central bank conducts matching operations in the domestic market to offset the impact of these government transactions on the ruble and the financial system
To remind you
The Central Bank of Russia sold 21.8 tonnes of gold to cover the budget deficit. Reserves are declining due to falling oil revenues and high military spending.