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.
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.
"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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