Russia continues to buy bullion
Peter Walden, News Editor
11 Dec 2014, 11:13 a.m.
The Russian Central Bank has increased its gold reserves by a further 18.9 tonnes last month, according to the World Gold Councils latest report.
Russia’s reserves now stand at 1,168 metric tonnes which equates to 10.20% of the country’s total reserves. The Russian Central Bank now has the world’s sixth largest gold holding.
This latest purchase coincides with a sharp drop in the value of the rouble. The currency has fallen 40% against the U.S. dollar since the start of 2014. Western sanctions directed at Russia’s oil and gas industry have hit the country’s finances hard.
The former Soviet states of Kazakhstan, Azerbaijan and Belarus all added to their official reserves last month.
Many believe Russia and the former Soviet states are planning to introduce a gold backed currency to compete directly against the U.S. dollar.