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Russia’s central bank forced to sell gold

HalfDimeHalfDime Posts: 676 ✭✭✭✭✭

"For the first time in its history, the Central Bank of Russia (CBR) has begun selling from its reserves directly to the domestic market, enabling banks, state-owned companies, and investment firms to purchase sovereign gold, according to a report from Ukrainian news service UNN citing the country’s Foreign Intelligence Service.

“For the regulator, this is a forced step: gold is effectively becoming a tool to support the ruble, patch up corporate liquidity, and cover budget needs amid the rapid depletion of other resources,” the report said.

The move is unprecedented: Before 2025, the CBR never sold its gold to commercial market participants, only receiving it through the Ministry of Finance to increase its reserves. But with the country’s National Welfare Fund seeing its liquid assets decline from $113.5 billion in 2022 to $51.6 billion in 2025 – and the fund's gold holdings falling 57% from 405.7 tons to 173.1 tons – the central bank has no choice but to sell off its reserves."

We will know it's getting worse if they start selling the Vodka too.

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