Russian Central Bank soars gold purchase

Baku. 5 October. REPORT.AZ/ The Russian Bank (Central Bank) continues to increase its share of gold in international reserves.

Report informs citing the Expert.ru, in the first 9 months of the current year, Bank of Russia has purchased 4.2 mln ounce of gold worth $ 5.3 bn. Notably, Russia's gold purchases increased by 15% compared to last year.

This indicator has increased twice compared to the previous period of sanctions.

It is reported that the Russian Bank purchased about 100 tons of gold a year, which is more than the aggregate gold purchases of all central banks of the world. At present, Russia holds the seventh place in the world in terms of its gold reserves. If official Moscow continues to buy this rate, it is possible that in mid-2018, Russia will bypass China, which currently has 1,842 tons of gold and currently ranked the 6th.

Analyzing the increase in gold purchases department head at “Private Solutions Singapore Castle Family office” financial institution Stanislav Verner said the U.S. Treasury Department will announce a report in the summer of 2018. The report will reflect the potential impact of restrictive pressure on Russia's public debt. Russian bonds are expected to be banned, which will seriously impact on the economy. Thus, for the last 1.5 years, foreign investors have financed 85% of the budget deficit in Russia.

In addition, arrest of Russia's gold and currency reserves assets is also possible. That's why the Russian Bank has increased its gold purchases. Notably, as of September 1, 2017, the share of gold in the gold and currency reserves of Russia was 17.3% (16.4% a year earlier).During this period, gold reserves increased from 51.9 mln. up to 56.1 mln ounces and an increase was 4.2 mln ounce or 8.1%.