(MOSCOW, RUSSIA) – Russia’s gold reserves have fallen to their lowest level since January 2020, with the Central Bank of Russia holding 73.2 million ounces of gold as of 1st August, according to data published by the central bank and reported by Bloomberg.
The bullion reserves have fallen by 1.6 million ounces since the beginning of the year. Over seven months, the value of the bank’s gold reserves decreased by $33.7 billion (£25.9 billion).
The Bank of Russia was once the world’s largest sovereign gold buyer, purchasing a significant share of the country’s production before suspending acquisitions in early 2020. Two years later, its pledge to resume purchases helped absorb some supplies that the country was trying to export amid sanctions imposed over the invasion of Ukraine in February 2022, but the bank never resumed large scale purchases.
The central bank began reducing its gold reserves last year as the Ministry of Finance sold precious metals and foreign currency from the National Wealth Fund to help cover the budget deficit caused by declining energy revenues.
Under the so-called mirror mechanism, the central bank conducts matching operations in the domestic market to offset the impact of these government transactions on the rouble and the financial system.
The Central Bank of Russia has sold 21.8 tonnes of gold to cover the budget deficit. Reserves are declining due to falling oil revenues and high military spending.
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