Russia is bored with USD and Euro, changing its appetite to gold and Yuan

The Central Bank of Russia (CBR) said it has reduced the storage of Euros, dollars and pounds in the country’s foreign exchange reserves to convert to gold and yuan in 2020.

As a result, the share of the Euro in Russia’s foreign exchange reserves in 2020 has fallen 1.6 percentage points to 29.2% since January 1. The rate of the US greenback also fell 3.3 percentage points to 21.2%. The pound’s share also fell slightly by 0.2 percentage points, to 6.3%.

At the same time, Russia’s gold reserves have risen to 23.3% from 19.5% a year earlier, according to television channel RT. The Chinese currency also increased its holdings in Moscow’s reserves by 12.8%. The percentages of other foreign currencies also rose 0.8 percentage points to 7.2 percent.

According to CBR, Japanese Yen accounts for 3.9% of Russia’s foreign exchange while Canadian dollar accounts for 2.5% and Australian dollar accounts for 0.8%.

By 2020, the asset value of CBR in foreign currencies and gold has increased to 588 billion USD.

Russia has been diversifying its national reserves, since Washington began imposing sanctions in 2014, aimed at cutting its economy’s dependence on the US dollar. In 2019, the proportion of Russian bullion reserves surpassed the US dollar rate for the first time.

Earlier, the Kremlin publicly stated that US sanctions and pressure were forcing Russia to find alternative payment currencies for the US dollar to ensure the security of the country’s economy.