Thursday, January 24th 03:39 PM IST

Gold now accounts for 10% of Russia reserves

# Russia gold  # Bank Rossii  # Russia crown jewels  

Russia's reserves, the world's fourth largest, stand at $526.4 billion. US dollar accounted for 46 percent of the currency portion of the central bank's reserves, and the euro 40.5 percent.

DAVOS(BullionStreet): After doubling it's gold reserves in the last five years, Russia said it will continue to add gold reserves to more diversify foreign reserves.

According to Alexei Ulyukayev, First Deputy Chairman of country's central bank, Bank Rossii, the share of gold has risen to nearly 10 percent, a target set in the middle of the past decade, raising market questions over whether the central bank will keep buying.

Russia's reserves, the world's fourth largest, stand at $526.4 billion. US dollar accounted for 46 percent of the currency portion of the central bank's reserves, and the euro 40.5 percent.

Sterling has a 9 percent share, the Canadian dollar 3 percent and the Australian dollar, added to Russia's reserves last year, at 2 percent.

Analysts said Russia is clearly buying gold to protect the ruble from devaluations and Russia from an international monetary crisis.

They added that it is eminently understandable and sensible. It is the antithesis of the argument that central banks have everything under control.

They know that is not true and so buy gold themselves. Their action also marks the transfer of real wealth in a global reset of wealth towards the emerging markets. They are the ones with the growing economies, Russia with its hydrocarbon wealth, they said.

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