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The Russian Central Bank Governor told CNBC this morning that Russia has bought and will continue to buy gold bullion for “principles of diversification.”
In an interview with Geoff Cutmore of CNBC, Elvira Nabiullina was asked
“Why would you be adding significant amounts of gold at this time when you could be taking euros or dollars or other foreign currencies to makeup reserves?”
Elvira Nabiullina said that the Russian central bank believes in diversification and bases itself
“upon the principles of diversification of our international reserves and we bought gold not only last year but during the previous years. Our gold mining industry is very well developed and it is ready to supply gold. That is why our attitude towards here is based upon diversification of our reserves.”
When asked whether Russia was buying gold produced in Russia in order to support the Russian gold industry as they may be struggling to export gold abroad, she disagreed and said that Russia does not have the “objective” of “supporting any specific industry” and she pointed out that Russia’s gold reserves are still quite small when compared to other countries – presumably referring to the U.S., believed to be the largest holder of gold reserves.
“In terms of the share of gold, actually we are not holding the records because there are countries that have a bigger share of gold in their reserves.”
Regarding the Russian economy, she says it is quite stable despite Western sanctions.
“Sanctions are actually negative for everyone who is affected by them, they erode traditional trade ties and they decrease the potential for developing the economy and the potential for increasing workplaces,” Nabiullina said.
She said that the Russian economy could withstand any developments in the economic sense.
“We have both accumulated buffers and gold currency reserves, and we have introduced a floating currency exchange rate in order to absorb various shocks,” Nabiullina added.
Full article: Russia Buy Gold Bullion For “Principles Of Diversification” – Central Bank Governor (Gold Core)