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Russia Buys More Gold to Counteract Sanctions




Following the harsh West-imposed financial and trade sanctions, Russia is putting more effort into buying gold. And, they're also buying the Chinese yuan. (Based on information by this article on BusinessInsider.com).

Russia is supposedly the 5th biggest holder of gold - according to official information, but obviously, the real figure regarding the US gold reserves is yet unknown.

Russia has never had so much gold in two decades. Based on the IMF-provided statistics (), the country is estimated to have around 1,143 tonnes of gold bullion.
The country has almost tripled its gold reserves since 2005.

One can observe a new trend: since the west has been sanctioning Russia, they turned more to gold and Chinese yuan. And, Russia has also exited the petrodollar system by selling their oil in roubles - and, if that's not enough, they also want to sell Iran's oil in roubles through a Russian market (see the earlier article here).

Both Russia and China are seeking ways to maximize the use of their own national currencies. The two giants are both actively and outspokenly avoiding the dollar.
Let's not forget: China gave up accumulating dollars for reserves in November 2013.

As reported a few days ago, the rouble is losing ground in front of the US dollar and the euro, as a result of the oil price falling.
We could speculate that in order to hinder the currency from devaluing, Russia could resort to at least partially backing its currency with gold.





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