The Central Bank will continue to invest in gold while reducing investments in US securities

© RIA Novosti / Oleg Elastokinematic in fotobanka gold. Archival photoThe Central Bank will continue to invest in gold while reducing investments in US securities© RIA Novosti / Oleg Elastokinematic the image Bank

The Bank of Russia will continue to increase the proportion of gold in foreign exchange reserves amid a decline in investment in us securities, said the head of the Duma Committee on Finance Anatoly Aksakov.

In the third quarter of 2018 global Central banks bought a record over a four-year period, the amount of gold, with the largest share acquired by the Bank of Russia, says the report of the world gold Council (WGC). The volume of purchases of Russian regulator reached 92.2 tonnes. Thus, the gold reserves of the country exceeded 2 thousand tons.

«This prevailing trend, the country in the last five years are increasing their gold reserves in foreign exchange reserves, reducing the share of dollars: investments in us securities record dropped. I think this trend will continue,» commented RIA Novosti Aksakov.

CBR started to sell off us government bonds after the US imposed sanctions against Moscow, threatened Russia off from the international payments system. By the early fall of investment, which in 2010 was $ 176 billion, was reduced to the minimum $ 14 billion.

International (gold and exchange) reserves of the Russian Federation represent highly liquid foreign assets available to the Bank of Russia and the government of the Russian Federation. Reserves consist of monetary gold, special drawing rights (SDRs), reserve position in the IMF assets in foreign currency (other reserve assets).

In 2017, Russia’s international reserves grew by 14.6% on 1 January, was 432,7 billion dollars. Historical maximum reserves reached in early August 2008 — 598 billion dollars. As at 21 April 2017 Russia’s international reserves reached $ 400 billion for the first time since December 2014.