Home>News>Economy>Cryptocurrency>De-Dollarization: Russia Removing All US Dollar Assets From Its $600 Billion National Wealth Fund

De-Dollarization: Russia Removing All US Dollar Assets From Its $600 Billion National Wealth Fund

Cryptocurrency
05.06.2021
207
De-Dollarization: Russia Removing All US Dollar Assets From Its $600 Billion National Wealth Fund

Russia has reportedly announced that U.S. dollar assets will be removed from its National Wealth Fund as U.S. sanctions on Moscow intensify. The fund, which currently totals about $600.9 billion, forms part of Russia’s gold and currency reserves.

Russia Steps up De-Dollarization Efforts

Russia’s finance minister, Anton Siluanov, announced at the St. Petersburg International Economic Forum on Thursday that dollar assets will be removed from the National Wealth Fund (NWF) altogether as Washington continues to impose sanctions on Moscow.

According to a translation by Reuters, he told reporters:

Like the central bank, we have decided to reduce investments of the NWF in dollar assets.

The finance minister further revealed that the changes will happen within the next month, after which the fund will likely hold the euro (40%), the yuan (30%), gold (20%), the Japanese yen (5%), and the British pound (5%). The dollar portion of the fund will be replaced by the euro, the yuan, and the pound.

Russia’s National Wealth Fund was initially designed to support the country’s pension system. It forms part of Russia’s gold and currency reserves. According to the publication, it totaled $600.9 billion as of May 27.

Timothy Ash, a senior emerging markets strategist at Bluebay Asset Manager, calls Russia’s decision to ditch the dollar “very political.” He believes that the move is meant to “send a signal” to the Biden administration with the message:

We don’t need the U.S., we don’t need to transact in dollars, and we are invulnerable to more U.S. sanctions.

He noted that this could also be interpreted as a sign that Moscow is expecting more sanctions from the U.S.

Russian President Vladimir Putin has made de-dollarization his country’s key policy in an effort to reduce the Russian economy’s exposure to dollar assets. The multi-year drive to reduce Russia’s vulnerability to U.S. sanctions comes amid deteriorating relations with Washington.

In January, Russia’s central bank published a report showing that gold had surpassed the U.S. dollars in the country’s reserves for the first time. Furthermore, Bitcoin News reported in August last year that Russia and China had been collaborating to reduce their dependence on the U.S. dollar, and trade settlements in USD between the two countries had fallen below 50%.

What do you think about Russia removing U.S. dollar assets from its National Wealth Fund? Let us know in the comments section below.

Author:bitcoin

Другие новости рубрики

Актуальные новости

02.11.2021, 13:26
144
Bitcoin price consolidation ‘could be over,’ says trader as Ethereum, Polkadot hit all-time highs
16.09.2021, 13:00
295
HUMAN Protocol (HMT) Announces Listing on Bitfinex
23.11.2021, 05:30
217
Central Bank’s Targeting of P2P Crypto Transactions Forces Startup to Quit Nigeria
09.08.2021, 14:15
863
Smoke from Siberia wildfires reaches north pole in historic first
03.11.2021, 04:38
250
El Salvador to build 20 ‘Bitcoin Schools’ with surplus from Bitcoin Trust
19.02.2022, 20:30
244
As Virtual Real Estate Gets Pricey Terrazero Technologies Provides Metaverse Mortgages
23.05.2022, 06:00
139
Middle East Crypto Exchange Coinmena Enters the Qatari Market, Regulator Says No Institution Licenced
08.03.2022, 16:49
171
Technical Analysis: ANC Falls 14%, as ZEC Leads Tuesday Gainers
btc
$ 24138
-0.04%
eth
$ 1899.61
-0.37%
xrp
$ 0.372799
-0.07%
busd
$ 1.001
+0.02%
ltc
$ 60.73
-0.7%