Saturday , January 16 2021

Russia turns the dollars into gold



Central banks of the world stack gold as an alternative to the US dollar and Russia is at the forefront. This contributed to the geopolitical tensions, the wars of sanctions and, above all, the desire for de-education.

World Gold Council statistics (VGC) show that gold demand rose 42% in the first quarter of 2018 between central banks.

During this period, central banks have bought a gold record in the last four years, and it was discovered that the Bank of Russia was the largest buyer.

Statistics show that central banks in the last quarter have acquired more than 148 tons of gold, up 22 percent more than in the same period of 2017. The absolute recorder is Russia, which bought 99.2 tonnes, followed by Turkey with 18.5 tons.

The reserves of Kazakhstan (14.4 tonnes), India (13.7 tonnes) and Poland (13.7 tonnes) have increased their gold reserves.

For the first time in modern history of Russia, the gold reserves have exceeded two thousand tons. For the last time, Moscow could boast of gold in 1962, during Nikita Khrushchev.

Now Russia's participation in world gold reserves is 17 percent and the value of Russian stocks is estimated at more than 78 billion dollars.

The increase in gold reserves allows Russia to diversify currency reserves due to the deterioration in relations with the United States. The experts explain that gold is a "unique protection against legal and political risks." Increasing the gold quota in foreign exchange reserves, the Central Bank of Russia reduces the share of dollars and the euro. The Russian authorities consider it better to have more gold resources than dollars. Hypothetically speaking, if Russia has tons of US dollars. UU. And the United States wants to damage its economy, it would be possible through currency manipulation, which is a golden guarantee against such a scenario, experts say.

"This is a long-term strategy, which does not apply to the first year, but it is now quite active. Previously, we have taken hundreds of billions of dollars in United States bonds: over 176 million dollars were invested in 2010, And now we have little more than ten million. We almost closed this story. As for gold reserves, we increase them more. Fortunately, we produce gold, and we do not matter, as some countries do. For example, Turkey imports a large amount of gold from of Venezuela. Gold is our stable resource, which we continue very well, "said the Russian newspaper Andrej Suzdaljtsev to Sputnik.

The Central Bank began selling US government bonds. UU. After that, EE. UU. They imposed sanctions on Moscow and when there was a threat that Russia was excluded from the international billing system, this year for the first time in post-Soviet history it overcame China by the volume of gold reserves.

Recall that the United States still has the highest gold reserves in the world (more than eight thousand tons, followed by Germany (more than 3.3 thousand tons), then the IMF (more than 2.8 thousand tons), Italy (2.45 thousand tons) and France (2.43 thousand tons). Russia is fifth.

Otherwise, Russia buys gold mainly dug in its territory and produces about 300 tons per year, and according to this indicator, it is only behind China and Australia.

(Sputnik)


Source link