Central Bank: Russia raises foreign currencies reserves to USD569.6B

10/30/2023 7:39:51 AM

(MENAFN) As reported by the central bank this week, Russia has consistently increased its foreign currency reserves, reaching a total of USD569.6 billion as of October 20.

According to the announcement from the regulatory body, during the week that began on October 13, the international reserves increased by USD3.6 billion, or 0.6 percent, with the main reason given being a "favorable market reassessment."

The stockpile reached an all-time peak of USD643.2 billion on February 18, 2022.

Nonetheless, approximately 50 percent of these holdings were subject to freezing by Western central banks in March of the previous year, as a component of sanctions connected to Ukraine. Apart from the asset freeze, Western nations prohibited any operations linked to their administration. The remaining assets, which include gold, foreign currency, and Chinese yuan, are retained within Russia.

During the previous month, President Vladimir Putin disclosed that Russia has already accrued a sum equal to twice the value of the gold and foreign exchange reserves that were frozen by Western nations last year. While addressing the audience at the Eastern Economic Forum in Vladivostok, he asserted that the freezing of Russian assets has led to an "erosion of credibility" in Western countries.

“I know that our gold and foreign exchange reserves are frozen. Yes, we have already earned twice as much. But we’re not even talking about this USD300 billion, we’re talking about undermining trust in those who did this,” Putin said.

Numerous economists have issued warnings about how the confiscation of Russian assets is undermining investor trust in the Western banking system. The European Union has been considering strategies to utilize the gains from investing in Russian assets to finance the reconstruction of Ukraine. Moscow has consistently cautioned that it will retaliate with comparable actions concerning Western assets situated within its borders.

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