Gold and foreign exchange reserves of Russia: size, structure, dynamics

Russia's gold and foreign exchange reserves are a strategic reserve in the form of precious metals, diamonds, major convertible foreign currencies, reserve positions, special drawing rights, and other highly liquid assets. It can be used by state monetary authorities to maintain the ruble exchange rate, finance the balance of payments deficit, and support the domestic economy. It is formed from the reserves of the Government (Ministry of Finance) and the Central Bank.

The laws of the market do not presuppose a stable, predictable, planned flow. On the contrary, peaks, recessions, cyclical development are natural for the modern world economy. To mitigate the consequences of a sharp fall, fuel the financial system, stimulate production, many countries accumulate part of their funds in national gold and currency reserves. Their global reserve is equivalent to $ 12 trillion.

Size by country

The gold and currency reserves of Russia in 2014 (as of August 1) were $ 468.4 billion. This is the sixth indicator among all countries. Such a large amount allows relatively painless transfer of economic downturns, invest in long-term prospective projects, use funds in emergency situations. It should be noted that the reserve at this historical stage is decreasing (by 4 billion over the last week of July).

• The greatest accumulation of the world's "locomotive" - the People's Republic of China. The country is building up its strategic reserve. In 2013, it increased by 3.09%, reaching 3.8 trillion dollars.
• Three times the smaller reserves in Japan: in February 2014 they amounted to 1.288 trillion dollars.
• The European Central Bank in early 2014 had a reserve of 771.789 billion dollars.
• More than the gold and foreign exchange reserves of Russia, the reserves of Saudi Arabia and Switzerland.
• The US reserve in February 2014 amounted to 146.057 billion dollars (18th place).

Structure

The principle of formation of the "gold and currency basket" presupposes the presence in the reserve of the most liquid currencies, monetary gold and other precious metals, and international financial assets. Exchange rates are interrelated, so if one currency in a pair becomes cheaper, the second - in proportion to the price. As a result, the reserve fund does not lose anything. The structure of Russia's gold and currency reserves is constantly changing, following the trends in the global economy. Earlier, the basis of reserves was made up of precious metals and the US dollar. With the introduction of the pan-European currency, the euro was significantly pressed by the dollar.

Too high dependence on the US dollar forces the countries to diversify their reserves. Russia suggests that interested states take (create) an alternative to the global currency. At the same time, the share of the currencies of other leading countries is expanding in the basket. For example, the reserve was significantly increased by the Canadian dollar, British pound, Japanese yen.

• The share of foreign currency is about 85%. For example, in the 1st quarter of 2013, 44.7% was the US dollar, the euro - 40.3%, the pound sterling - 9.9%, the Canadian dollar - 2.3%, the yen - 1%.
• Monetary gold is 8.9%.
• Special means of borrowing - 2%.
• The IMF reserve positions are 1%.

Gold reserves

Russia's gold and foreign currency reserves are based not only on currency. Diamonds and precious metals are also part of the reserve structure. These are ingots of gold, palladium, silver, platinum. Gold is the most popular investment in the long term. Although its market value is subject to large fluctuations, in the crisis, the "yellow metal" becomes the most reliable means of payment.

Countries differently estimate the expediency of accumulating funds in gold bullions. On the one hand, they are indispensable in the face of a serious economic crisis and a possible war. On the other hand, they lie in the storehouses as a dead weight, instead of working for the economy. For example, in the United States, more than 70% of the reserve is gold, and in China - 1.1%. Russia is the leader in gold reserves in the CIS - 1040.7 tons. However, it is 8 times less than stored in the US.

Volumes of gold reserves, 2014

Dynamics

The economy of the Russian Federation is mostly built around the extraction and sale of raw materials. The government took a principled position - it wants to get away from the model of the raw material economy and develop high-tech production. This will require years and multi-billion investment. So far, the gold and currency reserves of Russia are based on the sale of minerals and their derivatives. A significant share in exports - hydrocarbons (oil, gas), oil products and metals.

If you analyze the gold and foreign exchange reserves of Russia, the dynamics can be clearly traced. It strongly depends on the conjuncture for raw materials in the world, especially - in Europe, the main consumer of Russian gas and oil. For example, in 1999, the historical minimum of the reserve fund was fixed at $ 10.7 billion. In the same year, oil prices were minimal over the past 25 years, fluctuating around $ 10 per barrel.

Historical maximum

By 2007 there was a sharp demand for oil. In July 2008, a record value of the "OPEC basket" was fixed (the average arithmetic price for a barrel of different types of oil) - $ 140.73. The cost of gas is tied to oil prices, respectively, and it soared to the skies. The government was not ready to master the gushing flow of currency. Part of the excess profits was decided to accumulate in the gold and foreign exchange reserves. In August 2008, Russia's gold and foreign exchange reserves reached a historic high of $ 598.1 billion.

Today's Day

Today's foreign policy situation and the decline in prices for natural resources force the government to use part of the reserves to support the economy, strengthen the army, and ensure food security. If the gold and currency reserves of Russia amounted to $ 494.6 billion in 2014.03.07, then they decreased to $ 468.4 billion by August. Obviously, there are no reserves for their increase in the near future. However, the net amount of gold and foreign exchange reserves is not an indicator of the efficiency of the economy. If funds are spent on modernization, scientific research, invest in investments, the money spent today will be returned tomorrow in the form of new technologies, modern production, improving the standard of living, and improving the country's security.