Russian Central Bank has struggled to find options for its frozen foreign-currency reserves after Western nations imposed economic sanctions, says Governor Elvira Nabiullina.
- Russian officials project that sanctions have frozen nearly 50% of its $642B in reserves, leaving them with mostly China’s yuan and gold.
- Nabiullina stated they need to look toward the future, but they are struggling to get specific suggestions, further noting the countries issuing liquid reserve currencies are limited.
- Before Russia’s invasion of Ukraine, 11% of its holding were dollars, as the bank had significantly cut its US exposure for years while increasing the yuan and euro to its reserves.
- Now, more than 30% of its reserves are in euros, with extra investments in the pound and yen.
Meanwhile, all of the above reserves have been frozen by foreign nations amid the ongoing war that pushed Russia’s central bank to take immediate steps.
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Source: Markets Insider