Russia Reserves Set All-Time Record, Amounting to $618 bln

Russia Reserves Set All-Time Record, Amounting to $618 bln

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Russia is currently among the top five countries with the largest forex reserves. According to the website of the Accounts Chamber, it ranks fifth after China, Japan, Switzerland, and India.

The report was published by the Accounts Chamber after an audit of the foreign reserves management.

As of September 1 this year, Russia’s foreign exchange reserves were worth over $618.2 billion. “A historical record has been set this year,” the auditors said in comments.” It is the first time the Central Bank has achieved such results.

According to the Accounts Chamber, the share of gold reserves in Russia's foreign exchange reserves has recently increased significantly, from 7.8% at the beginning of 2014 to 23.3% in 2020.

According to Gazeta.ru, which refers to figures published by the Central Bank, as of October 1, Russia's international reserves amounted to $614.122 billion.

Earlier reports said that the International Monetary Fund (IMF) had allocated Russia $18 billion in the form of Special Drawing Rights (SDR) in August. The SDR is an accounting unit for IMF transactions with member countries. Experts specify that these assets are transferred primarily to enable countries to restore their economies after the devastating wave caused by the global COVID-19 pandemic. In some countries, the situation reached a critical point. This was the kind of help many around the world needed. In particular, auditors expect that these funds will help increase the liquidity of international reserves.

According to Parlamentskaya Gazeta, Chairman of the Accounts Chamber Alexei Kudrin said at a parliamentary hearing at the Federation Council that the country's budget for the next three years had set aside additional 1.1 trillion rubles ($15.44 bln) that are the so-called “unallocated expenses.” Kudrin underlined that this amount was “a sufficient safety cushion” in Russia's budget to enable the country to participate in various events in the conditions of a high level of uncertainty in the world. Let's hope that this “safety cushion” which was farsightedly created in advance, will help Russia survive the difficult times caused by the economic downturn due to the outbreak of the COVID-19 pandemic.

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