Russia Sells Gold Reserves to Fund Deficit Amid Economic Strain
The Bank of Russia has begun selling significant portions of its gold reserves to address a widening budget deficit, exacerbated by diminished oil and gas revenues. Approximately 22 tons of gold have been sold since the start of 2026, with gold reserves falling to 74.1 million troy ounces by April 1st. This strategy aligns with practices seen in other developing countries facing similar financial pressures, including increased government spending and the need to maintain currency stability. The sales are occurring on the domestic market, mirroring the Ministry of Finance’s management of the National Wealth Fund and offering liquidity during a period of global economic uncertainty.
John Q. Hosedrinker