Gold is more expensive $ 2,000 for an ounce: why Russia is profitable and who buys Russian gold
" "The price rise in [for gold] can feel, for example, in Russia," said Ivan Svitk, the chairman of the Unex Bank Board, in the comment of focus. - After all, if you believe in media publications, Russia is currently actively selling China's gold and because of the growth of world prices they receive more currency.
" Indeed, while in the west, the embargo on gold with the Russian Federation, with reference to the Main Customs Office of the PRC, report that in 2022 Russia increased the export of gold to China by 67% to 6. 66 tons at $ 386. 874 million. The price for an ounce was $ 1647. Obviously, now that gold prices are beating records, such trade with China will be more profitable. The rise in gold prices is also useful for the Russian budget.
Because in January 2023, to cover his deficit, the Russian Ministry of Finance sold 3. 6 tons of gold from the National Welfare Fund (FND) for the first time in history. And since then the Gold Stocks of the FND, according to the Russian Ministry of Finance, have decreased as follows: the Ministry of Finance of Russia reports that part of the FND funds in the accounts of the Bank of Russia in the amount of 7479. 1 million Chinese yuan and 11862. 9 kg of gold were sold for 137.
07 billion rubles [near $ 1. 08 billion] and the proceeds are credited to a federal budget to finance its shortage. But this is just a drop in the sea, because the Russian budget deficit according to the Ministry of Finance of the Russian Federation in the first quarter of 2023 reached 2. 4 trillion rubles ($ 28. 9 billion). Therefore, obviously, the sale of gold stocks will continue. However, the Russian Central Bank accumulates gold.
Due to the sanction blocking of assets in world currencies, the Russian regulator has started reformatting its reserves and replacing frozen funds with gold. As of April 2023, the cost of gold in the reserves of the Russian Central Bank reaches $ 147. 011 billion, and it accounts for 24. 75%. Technically, the rise in price of gold contributes to the increase in the value of this asset and an increase in the volume of reserves of the Russian Central Bank.
This means an increase in the level of economic stability in the country, which is leading an aggressive war against Ukraine. In its attention to yellow metal, the Russian Central Bank was not alone. According to Reuters with reference to the World Gold Council (WGC), in 2022, the world's central bank increased their gold reserves by 1136 tons worth about $ 70 billion (+152% compared to 2021) Since 1950.
Among the countries whose centuries is fond of gold, the publication calls Turkey, China, Egypt and Qatar. Reuters explains this trend by instability on the geopolitical and macroeconomic front. "Central banks can use gold in the process of managing their foreign exchange reserves. Their purchases and sales can affect the prices of gold," - said in a comment on the focus, Herman Marchenko, Director of the Department of Treasury Cominbank.