Russia Sells Gold Reserves to Fund War, Signaling Economic Crisis
In a shift to address budgetary demands, Russia’s Central Bank has initiated the sale of physical gold from its reserves. This change involves “mirroring” Finance Ministry transactions within the National Wealth Fund, moving from paper-based operations to actual sales on the domestic market. The National Wealth Fund’s gold holdings have significantly decreased since the invasion of Ukraine, indicating a reliance on these assets to fund wartime spending. These gold sales, along with similar yuan transactions, aim to inject foreign currency into the domestic market and stabilize the ruble amid declining oil and gas revenues.
John Q. Hosedrinker