The Central Bank bought a record amount of gold

© RIA Novosti / Pavel to Listenpreise in photobacteria bars. Archival photoThe Central Bank bought a record amount of gold© RIA Novosti / Pavel to Listenpreise the image Bank

In the third quarter of 2018 global Central banks bought a record over the past four years the amount of gold. The biggest purchaser became the Bank of Russia. These data are presented in the report issued by the world gold Council (WGC).

The global volume of purchases of precious metals over the past three months amounted to more than 148 tons, or 22 percent more than in the same period of 2017.

The greatest volume of gold bought by Russia (99.2 tons) and Turkey (18.5 tons).

Thus, at the disposal of the Russian Central Bank gold reserves for the first time exceeded two thousand tons. Now Russia accounts for seventeen percent of foreign exchange reserves of the planet. The cost is estimated at more than $ 78 billion.

In addition, its gold reserves increased by such countries as Kazakhstan (14.4 tons), India (13.7 tonnes) and Poland (13.7 tons).

Revision policy

First Deputy Prime Minister — Finance Minister Anton Siluanov said earlier that Russia is forced to revise the policy of investment of international reserves. According to him, the essence of this is to store them in assets, most risk-free, in terms of restrictions.

He explained that the reserves are stored in some basket of currencies in different asset types — the American, British, European. And in the current environment there is a desire to store them in those assets, which to a lesser extent, there is a risk of abuse of some sanctions on them, said Deputy Prime Minister.

He added that this is necessary in order to avoid any problems that can, if necessary, quickly of these assets to get out, using them for public use.

«We see that there are changes in the policy of the Central Bank in terms of storing its reserves and foreign exchange reserves to a previously established basket,» — said Siluanov, noting that change comes «not in favor of us assets».

The sale of US government bonds

After the United States began imposing sanctions against Russia and there was threat of disconnection from the international system of payments and limitations on transactions with the Russian public debt, the Central Bank started to sell off us government bonds.

In 2010, Russian investments in these securities, exceeded 176 billion dollars by the early fall of investments was reduced to the minimum $ 14 billion.

Expert opinions

According to Jim Richards, editor of Strategic Intelligence, Russia is now in a state of financial war, and against this background, it gets rid of American dollars and buy gold, which protects Moscow from sanctions and the freezing of dollar assets. The expert called it a «very wise move» of Vladimir Putin.

According to partner the British company, SP Angel John Meyer, USA increasingly use the dollar as a weapon, and so the investment in gold is the most appropriate option for those who do not want to risk investing in the U.S. currency.

Chief expert of the Agency «FINEK» Mikhail Belyaev on radio Sputnik noted that this step of the Central Bank is perfectly justified.

«The purchase of gold, apparently, happen in the direction of de-dollarization of economy and monetary increase, that is, the metal part of foreign exchange reserves,» he said.

Sanctions against Russia

The United States under various pretexts imposed against Russia a large number of restrictive measures. Part is superimposed by the President and may be removed, but other established in accordance with the law «On combating the enemies of America through sanctions» and cannot be cancelled without the consent of Congress.

Russia has repeatedly said that talking with her in language of sanctions counterproductive. The foreign Ministry stressed that Moscow believes that unilateral sanctions of the USA waves illegitimate and useless.