The Central Bank considers it inappropriate to increase the share of gold in reserves

The Central Bank of Russia (CB) considers it inappropriate to accumulate gold in foreign exchange reserves in the current environment, said Alexei Zabotkin, deputy chairman of the regulator. According to him, this will provoke an increase in the money supply.

During the meeting of the Federation Council, the chairman of the Union of Gold Producers, Sergei Kashuba, suggested that the authorities support the gold mining industry by buying out all the precious metal that was not sold on the market. Mr. Zabotkin, in turn, noted that the mandate of the Central Bank of the Russian Federation does not provide for targeted support for economic sectors.

“The Ministry of Finance has the right to decide on the use of its resources for the purchase of gold to the extent that it considers appropriate. The government, as part of its industrial policy, can also consider supporting the sector, but targeted support for sectors of the economy is not within the mandate of the Central Bank, ”said the deputy head of the Bank of Russia (quoted from TASS).

In September of this year, gold and foreign exchange reserves decreased by a quarter. As of October 7, the volume of the country’s international reserves made up $548.7 billion

15 March Central Bank suspended purchase of gold, but on March 28 he began to acquire the precious metal at a fixed price – 5 thousand rubles. for one gram. This was due to the need to ensure a balanced supply and demand in the domestic market. From April 8, the regulator began to purchase gold from banks at an agreed price.

After the start of the military operation in Ukraine, the European Union (EU) imposed sanctions against the Central Bank of Russia. In particular, the EU froze the reserves of the Bank of Russia in the amount of $24.5 billion. Also, as part of the sanctions, about $300 billion of the $640 billion of the Central Bank’s gold and foreign exchange reserves were frozen.

Milena Kostereva