According to the latest BRICS-related reports, Russia will double gold and foreign currency acquisition in the coming month. Check out the latest reports about this below.
Russia to double gold and foreign currency acquisition
Over the past year, the global economy has undergone a shift in perspective.
With concerns about the stability of the US dollar, central banks worldwide have increasingly turned to alternative currencies and gold as a safe haven asset. This diversification strategy helps protect against the fragile position of the greenback.
China and Russia first brought the shift towards de-dollarization to the forefront. Now, Russia has made an important financial announcement regarding its finance strategy amid BRICS de-dollarization plans.
The country has stated its intention to double its gold and foreign currency acquisition in the coming month.
According to the report, the Central Bank is currently carrying out “forex interventions” at the request of the Finance Ministry.
The report also mentions that the Central Bank has started selling foreign currencies to compensate for the funds that were used from Russia’s emergency fund in 2023.
It is expected that Russia will sell more foreign currency than it buys in the upcoming month. However, the volume of sales will be significantly lower than it was in March.
The decision to increase gold and foreign currency purchases will help reduce the amount of net foreign currency interventions to almost zero.
As mentioned earlier, the acquisition of gold by Russia and China played a significant role in driving up its value to record prices in 2024.
This move has also led to the promotion of local currencies in the BRICS bloc, setting it as a model for economic infrastructure on a global scale. In conclusion, this development remains an essential factor in the foreign exchange currency dynamics worldwide.
The global reserve status of the US dollar is likely to face challenges in the long run due to various factors.
One of the major concerns is the increasing debt of the United States. Moreover, the current state of the greenback is expected to result in a decrease in its acquisition globally.