LAWRIE WILLIAMS: Russia adds to gold reserves again in March
China may continue to be telling the world that it has added zero to its gold reserves since October 2016, but Russia is still increasing its gold hoard on a monthly basis.
Its official total gold reserve holding as reported to the IMF surpassed that of China a couple of months ago and continues to rise further with the central bank reporting another 300,000 ounces (9.33 tonne) increase in March bringing its official gold holding to around 1,890 tonnes, now getting on for nearly 50 tonnes more than China’s ‘official’ total of 1,842.6 tonnes.
There is speculation that, given the badwill between the two nations, Russia may dispose of some of the U.S.-denominated assets in its substantial Forex holdings replacing them with some other currency (the Chinese yuan for example) and gold (It may already have started this process). This would be a move that if followed by some other nations (notably China with its enormous forex reserves) could start to destabilise the U.S. economy which is very reliant on the global acceptance of the U.S. dollar as the world’s principal reserve currency..
According to a recent report by Russian news agency, Pravda (), The Bank of Russia holds a third of its currency assets in the U.S. but all its physical gold holdings are thought to be held in depositories in Moscow, St Petersburg and Yekaterinburg. Formally, the USA can not impose sanctions on the Bank of Russia, even though earlier, US authorities froze the assets of the National Fund of Kazakhstan.