Moscow, Russia – Russia’s gold reserves achieved a historic milestone in October, as the total value surpassed USD 200 billion for the first time, according to data released by the Bank of Russia.
As of November 1, the dollar value of the country’s gold holdings reached USD 207.7 billion, reflecting a nearly 4 percent increase over the previous month and setting a new record, breaking the September benchmark.
This rise in gold holdings comes as Russia continues to diversify its reserves, driven by both international economic shifts and a notable increase in gold prices.
The proportion of gold within Russia’s total international reserves also climbed significantly, reaching 32.9 percent — its highest share since November 1999, when it touched 34 percent.
The Bank of Russia stated that the country’s highest-ever share of gold in its reserves was recorded in January 1993, at 56.9 percent, a figure that remains unmatched to date.
In October, the price of gold saw substantial growth, hitting a record high of USD 2,800 per ounce. This price surge contributed to the increase in the dollar valuation of Russia’s gold reserves.
Analysts have noted that Russia’s strategy of increasing its gold reserves is partly driven by efforts to strengthen its economic resilience in the face of fluctuating global markets and economic sanctions, which have impacted its ability to rely on traditional foreign currency holdings.
While the Bank of Russia has focused on building up its gold reserves, the country’s total international reserves, including both foreign currency and gold, showed a slight decrease as of November 1.
The bank reported a total of USD 631.6 billion in international reserves, marking a decline of USD 2.1 billion from the previous month. This dip is attributed to currency fluctuations and other adjustments within the foreign exchange components of the reserves.
Russia’s ongoing emphasis on gold is part of a broader trend among central banks globally, which have shown a growing preference for the precious metal as a hedge against economic volatility.
The recent surge in gold prices has further underscored the asset’s role as a safe haven in times of geopolitical tensions and financial instability.
The Bank of Russia has steadily reduced its holdings of U.S. dollars and other foreign currencies in recent years, opting to allocate a larger portion of its reserves to gold.
Economic analysts suggest that Russia’s strategy to increase the proportion of gold in its reserves aims to reduce exposure to currency risks and reinforce the country’s financial stability.
The shift reflects a strategic approach amid persistent economic sanctions from Western nations, which have limited Russia’s access to various international financial systems.
By boosting its gold reserves, Russia is not only diversifying its portfolio but also gaining greater control over assets that are less susceptible to external influences.
With gold prices at record levels and the Bank of Russia’s commitment to expanding its gold holdings, experts predict that Russia’s reserves could see further gains in the coming months.
The country’s ability to maintain a high share of gold in its reserves may serve as a stabilizing factor for its economy, particularly in an unpredictable global financial landscape.
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