Russia Wants to Boost Gold Reserves to $500 Billion

Russia’s Central Bank says it's determined to boost the country's gold reserves to pre-2013 levels of at least $500 billion in order to cover its negative capital outflow.

Fri, Jun 5, 2015
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The head of Russia's Central Bank has said the country intends to boost its gold reserves to $500 billion, which is more than double its current reserves.

Elvira Nabiullina, head of the Central Bank, told Rossiyskaya Gazeta that Russia will try to boost its gold reserves to $500 billion, even though $188 billion is deemed sufficient for the country.

Currently, Russia possesses some $360.5 billion worth of gold reserves, an amount that covers over three months of imports, the country's short-term foreign debt, and twenty percent of Russia's entire money supply.

According to Rossiyskaya Gazeta, Russia's gold reserves exceeded the $500 billion mark from 2012-2013, when global oil prices were at their peak. However, right now due to low oil prices, the Russian budget will receive $150-170 billion a year compared to a few years ago before the crisis.

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"Recent experiences forced us to reconsider some of our ideas about sufficient and comfortable levels of gold reserves," Nabiullina said, adding that the country needs a sufficient amount of gold reserves to be able to cover negative capital outflow for the next 2-3 years.

Nabiullina said Russia plans to accumulate more gold reserves gradually, so that high inflation can be avoided.

Source: Rossiyskaya Gazeta via Sputnik News.

 

Image credit: Stevebidmead via Pixabay.com

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