1/3/2022
First Take: What Russia’s Doubling in Gold and Yuan Holdings Really Means
On Friday (Dec. 30), Russia’s Finance minister announced their National Wealth Fund (NWF) is now permitted to allocate up to 60% of its holdings in Chinese Yuan and up to 40% of its holdings in Gold Bullion.
This is a doubling in permitted allocation percentages up from 30% and 20%.
Simultaneously the fund reduced its holdings of the British Pound and the Japanese Yen to zero.
Reuters reports from Moscow:
Russia’s finance ministry on Friday said the maximum possible share of Chinese yuan in its National Wealth Fund (NWF) had been doubled to 60% as it restructures its rainy-day fund to reduce dependency on currencies from so-called “unfriendly” nations.
The NWF had been recently used to finance the widening budget deficit in 2022 due in no small part to sanctions by the G7. The Fund stands at $186.5 billion according to Reuters.
The official statement out of the ministry read in part like this:
“The Russian finance ministry is continuing its consistent reduction of the share of currencies of ‘unfriendly’ states in the structure of the National Wealth Fund’s assets.”
The news agency notes these measures are in no small part a counter to the sanctions by western nations.
Source: ZeroHedge
© CopyRights RawNews1st
