Russia’s central bank slashed dollars and added yuan and euros even before the Ukraine war began, per Bloomberg. Russia’s yuan holdings jumped from 12.8% to 17.1% year-over-year, while it roughly halved its dollar holdings. Russia’s Central Bank Governor said Monday that the bank has enough reserves in yuan and gold, despite sanctions. Loading Something is loading.
In late 2021, well before the Ukraine war, Russia had already begun reducing its exposure to the dollar and adding yuan and euros to its holdings.
Currently, Russia has enough reserves in yuan and gold despite Western sanctions cutting off the country’s access to certain currencies, Elvira Nabiullina, Bank of Russia Governor, said in her annual report to parliament on Monday.
As of January 1, Russia’s central bank had reduced its dollar reserves from 21.2% to 10.9% from the year prior, according to a Bloomberg article.
Meanwhile, Russia’s yuan holdings jumped from 12.8% to 17.1% compared to a year earlier. Its share of euros rose from 29.2% to 33.9%, according to the bank.
Gold reserves, meanwhile, dipped slightly.
Russia’s economy will eventually be able to return to a growth trajectory even after a lowering of its GDP, Nabiullina told parliament.
Since Russia first invaded Ukraine on February 24, the US and other nations have imposed stringent financial sanctions on the country’s economy, its corporations, and some of its richest oligarchs.
The sanctions include restrictions on trade and freezes on foreign currency reserves.
According to Russian officials, these sanctions have frozen about half of its $642 billion in reserves.
Last week, Russian financial daily Kommersant reported that large Russian banks have seen a spike in funds being converted from dollars and euros to yuan, and that many new accounts were being opened in yuan.
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