(Deena Kamel) The regulator suspended purchases in 2020, since when the level of reserves has remained largely unchanged.
Related Oil Prices Jump on Reports U.S. Will Ban Russian Oil and Natural Gas Imports
by Deena Kamel, March 6th, 2022
Live updates: follow the latest news on Russia-Ukraine
Russia’s central bank has said it will resume buying gold from the domestic market, as it takes measures to help ensure financial stability amid western sanctions against the country over the war in Ukraine.
Russia held a little under 2,300 tonnes of gold, or 21 per cent of total reserves, at the end of January, according to the World Gold Council. Bullion was trading at $1,988.32 and ounce at 8.23am UAE time on Monday.
“There has been no indication given around the scale of future purchases, but we will continue to monitor developments,” Krishan Gopaul, market intelligence manager at the council, said in a blog post on March 4.
The Central Bank of the Russian Federation suspended its gold purchases in 2020, since when the overall level of gold reserves has remained largely unchanged. Russia’s banking regulator announced on February 28 that it planned to resume purchases from domestic producers.
The country faces deepening economic isolation following sanctions by the US and European countries. Russia’s military offensive in Ukraine, and the sanctions imposed on Moscow, will have a “severe impact” on the global economy, the International Monetary Fund said on Saturday. The conflict has already driven up energy and commodity prices, adding inflationary pressures from supply chain disruptions and sending a wave of more than one million Ukrainian refugees to neighbouring countries.
The World Gold Council, which released the first set of central bank gold reserve data for 2022, said that global gold reserves fell by 12 tonnes in January, when central banks’ selling outweighed purchases of the precious metal.
“On the face of it, this is a continuation of the switching between net purchases and sales we have seen in recent months,” Mr Gopaul said.
The bulk of the decline in January was due to a sizeable sale from Kazakhstan. Its gold reserves fell by just over 17 tonnes, taking the level of gold reserves to 385 tonnes or 66 per cent of total reserves — the lowest tonnage level since October 2020.
“Kazakhstan is a significant gold producing country and their central bank has traditionally bought from domestic sources. It is not uncommon for those countries that buy from domestic sources to swing between buying and selling,” Mr Gopaul said.
Other sellers include Russia with 3 tonnes, Poland with 2 tonnes, and Uzbekistan and Mongolia each with 1 tonne.
Gross purchases totalled less than 13 tonnes in January, with Turkey’s central bank accounting for the majority of it.
Turkey bought more than 10 tonnes [of gold] during the month, pushing gold reserves back in excess of 400 tonnes or 25 per cent of total reserves, the WGC data showed.
India made its 12th consecutive monthly purchase, adding over a tonne during the month and taking total gold reserves to 755 tonnes.
Qatar and Ireland also bought gold in January — 0.7 tonnes and 0.5 tonnes, respectively, with Ireland continuing to represent developed market interest in gold, the WGC said.
“We believe it is likely that central bank demand for gold will continue its positive 12-year trend in 2022, but may not match the strong performance of 2021,” Mr Gopaul said.
Support this site so we can continue to tell you the truth.
DONATE HERE
Stillness in the Storm Editor: Why did we post this?
The news is important to all people because it is where we come to know new things about the world, which leads to the development of more life goals that lead to life wisdom. The news also serves as a social connection tool, as we tend to relate to those who know about and believe the things we do. With the power of an open truth-seeking mind in hand, the individual can grow wise and the collective can prosper.
– Justin
Not sure how to make sense of this? Want to learn how to discern like a pro? Read this essential guide to discernment, analysis of claims, and understanding the truth in a world of deception: 4 Key Steps of Discernment – Advanced Truth-Seeking Tools.
Stillness in the Storm Editor’s note: Did you find a spelling error or grammatical mistake? Send an email to corrections@stillnessinthestorm.com, with the error and suggested correction, along with the headline and url. Do you think this article needs an update? Or do you just have some feedback? Send us an email at sitsshow@gmail.com. Thank you for reading.
Source:
DIRECT DONATION
Support our work! (Avoid Big Tech PayPal and Patreon)
Leave a Reply