The Ministry of Finance of Russia plans to take another step towards de-dollarization of its international reserves, reports Bloomberg. To change the structure of the national welfare Fund in favor of the Euro and the yuan pushing the country’s geopolitical risks.
ReutersМинистерство of Finance of Russia in 2020 will reduce the dollar’s share in the national wealth Fund, Bloomberg reports, citing Deputy Finance Minister of the country Vladimir Kolycheva. It is noted that the most important reason for the change of structure of foreign exchange reserves are “geopolitical risks”. According to Kolycheva, the replacement of the dollar are considered “different currency”, which by the standards of the IMF are considered reserve, including the Chinese Renminbi and the “currency of other countries.” Thus, the Ministry of Finance will consider the question of whether to conduct more regular purchases of foreign exchange to the welfare Fund in euros instead of dollars. “This is a great opportunity for the Central Bank to increase the share of Euro reserves,” said economist Sophia Donets, adding that for Russia it is a political goal. Bloomberg reminds that earlier the President of Russia Vladimir Putin announced the beginning of the so-called de-dollarization of his country in response to the tightening of anti-Russian sanctions by the United States. Under this policy, only in 2018 the Central Bank, translated into euros and RMB $100 billion, which made the country the largest holder of the stocks of the Chinese currency in the world. Currently, about 40% of the Fund, which is due to the income from the sale of oil in October rose to $124.5 billion, is the dollar, 30% Euro and 6% — pound sterling. However, for the current year international reserves of the Central Bank of the country has increased by $76 billion to $542,9 billion.