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Russia Is Removing All US Dollar Assets From Its $600 Billion National Wealth Fund – Featured Bitcoin News

Russia has reportedly announced that US dollar assets will be removed from its National Wealth Fund as US sanctions on Moscow intensify. The fund, which is currently worth about $600.9 billion, is part of Russia’s gold and currency reserves.

Russia intensifies de-dollarization efforts

Russia’s finance minister, Anton Siluanov, announced on Thursday at the St. Petersburg International Economic Forum that dollar assets would be liquidated. national wealth fund (NWF) solely because Washington continues to impose sanctions on Moscow.

According to a translation from Reuters, he told reporters:

Like the central bank, we have decided to reduce NWF’s investment in dollar assets.

The Finance Minister further revealed that the changes would take place within the next month, after which the fund would likely have Euro (40%), Yuan (30%), Gold (20%), Japanese Yen (5%). and the British pound (5%). The dollar portion of the fund will be replaced by the euro, yuan and pound.

Russia’s National Wealth Fund was initially designed to support the country’s pension system. It is part of Russia’s gold and currency reserves. As of publication, it totaled $600.9 billion as of May 27.

Timothy Ashe, a senior emerging market strategist at Bluebay Asset Manager, called Russia’s decision to leave the dollar “very political”. He believes the move is to “send a signal” to the Biden administration with the message:

We don’t need the US, we don’t need to trade in dollars, and we are vulnerable to more US sanctions.

He said this could also be interpreted as a sign that Moscow is expecting more sanctions from the US.

Russian President Vladimir Putin has made de-dollarization his country’s flagship policy in an effort to reduce the exposure of the Russian economy to dollar assets. The multi-year campaign to downplay Russia’s sensitivity to US sanctions comes amid worsening relations with Washington.

In January, the Central Bank of Russia published A report showed that for the first time gold in the country’s reserves had crossed the US dollar. Plus, bitcoin news Reported In August last year when Russia and China were collaborating to reduce their reliance on the US dollar, and the US dollar trade agreement between the two countries fell below 50%.

What do you think about Russia’s removal of US dollar assets from its National Wealth Fund? Let us know in the comments section below.

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