According to International Monetary Fund data compiled by Bloomberg, the Central Bank of Russia bought 26.1 tons of gold in July, bringing its holdings to 2,170 tons. This makes it the largest single monthly purchase since late 2017.
The Russian Central Bank website showed that the stockpile was valued at $77.4 billion at the end of last month. The current prices revealed that the reserves are worth around $83.6 billion.
Russia has continued reducing its holdings of US treasuries. The country has lowered its holdings of US debt from $96.1 billion in March to just $14.9 billion in May.
The increased gold purchases come as the US President Donald Trump administration gets ready to impose new sanctions on Moscow.
The central bank’s First Deputy Governor Dmitry Tulin said that Moscow sees gold as a “100-percent guarantee from legal and political risks.”
The central bank also explained the strategy as part of diversifying the country’s reserves away from the US dollar.
The World Gold Council included that Russia is not only the largest official buyer of gold but also the world’s third-biggest producer, with its central bank purchasing from domestic miners through commercial banks.
In the past decade, Russia has mined more than 2,000 tons of gold, with annual production expected to rise by 400 tons by 2030.
Source: Russia Today