Countries return their gold reserves amid sanctions against Russia – Kommersant

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More and more countries are repatriating gold reserves due to the sanctions imposed on Russia and the subsequent freezing of its assets. The agency reported Reuters with reference to the survey data of the American investment company Invesco.

Research data involving central banks and sovereign wealth funds from several countries shows that 68% of the organizations surveyed keep their reserves in their home countries. In 2020, this figure was at the level of 50%.

Reuters attributes this trend to the freezing of half of Russia’s $640 billion in foreign exchange reserves as part of the sanctions. Thus, one of the participants in the Invesco survey called gold a “safe haven asset” that needs to be “secured”.

More than 85% of 85 sovereign wealth funds and 57 central banks believe that inflation will only increase in the next decade. About 80% of the 142 participants in the study consider geopolitical tensions to be the main risk in the next decade.

In addition, due to geopolitical tensions, some central banks have become more likely to diversify currencies. At the same time, 7% of respondents believe that the growth of the US public debt has a negative impact on the dollar, although the majority still do not see an alternative to it. The share of supporters of the Chinese yuan as an alternative to the dollar fell to 18% from 29% compared to a year earlier.

Anastasia Larina

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