The international funds came closer to the previous peak at the end of last month, as they climbed to the highest point in 12 years to $591.8 billion, according to the latest figures from the Russian Central Bank. The data released on Friday shows that the holdings rose by $9.1 billion, or about 1.6 percent, in just one week (July 24-31). The regulator said that the increase was driven by “positive revaluation” and gold’s rally.

Russian forex reserves were at all-time highs in August 2008, when they reached $598.1 billion. However, the stockpile started to shrink rapidly amid the global economic crisis and dropped by more than $100 billion in less than three months.

Analysts say that the nation’s forex holdings may reach the $600 billion milestone by the end of August. According to Sergey Grishunin of Russia’s National Rating Agency (NRA), the holdings could grow by up to two percent due to the rising euro exchange rate against the dollar. The agency expects foreign currency reserves to reach around $448-450 billion, while the bullion stockpile could have already hit $152 billion due to the recent surge in bullion prices.

While most analysts polled by RIA Novosti agree that the gold and foreign currency holdings will surge to a new high, some expect slower growth. According to Moscow-based ACRA rating agency, the international funds may rise to the new level by the end of the year or in early 2021. Meanwhile, National Credit Ratings (NCR) agency, a subsidiary of Russian business media holding RBC, says that the national forex reserves will exceed the $598 billion peak in the second part of the year, but will not remain at the record level for long due to gold’s volatility.

For more stories on economy & finance visit RT’s business section

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Celebrated Spanish wines and the unique regions they come from

In this episode of Here We Grow, I went on a journey to find out more about the traditions and history of winemaking in Spain, one of the world’s biggest – and most diverse – producers. This took me to…

Novartis sales, profit rise amid coronavirus as drugmaker confirms 2020 outlook

ZURICH (Reuters) – Swiss drugmaker Novartis (NOVN.S) boosted first-quarter sales and profit and confirmed its 2020 targets as its generics unit’s sales were lifted during the coronavirus epidemic without disruptions in business for its main products. Core net income rose…

CORONAVIRUS PANDEMICSome 15,000 Russians stranded abroad receive monetary aid — diplomat

MOSCOW, May 8. /TASS/. Material aid provided to Russians who cannot return home over the restrictive measures covers about 15,000 people, Russian Foreign Ministry spokeswoman, Maria Zakharova announced Friday. “A total of 1 billion rubles [$13,656,111] has been allocated for this. We…

Exclusive: Klarna talks to investors on raising funds at over $10 billion valuation: sources

STOCKHOLM/BENGALURU/LONDON (Reuters) – Swedish payments firm Klarna is in talks with investors for a new round of funding which would value it at more than $10 billion, three sources said, as it attempts to expand its business in the United…