Russia to remove Dollar assets from $176bn wealth fund ahead of Geneva summit

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Russia to remove Dollar assets from $176bn wealth fund ahead of Geneva summit

Kremlin had issued a statement later this week saying that the Russian National Wealth Fund having had assets worth of $176 billion as of August, 2020, would ditch out entire assets held in American currency in a move what analysts had branded as a political poker chip ahead of a Presidential US-Russia meet scheduled to take place late this month.

Nonetheless, Kremlin has been getting rid of assets held in US Dollar since Western countries had inclined sanctions on Russia following its annexation of Crimea back in the 2014s, while Moscow was reportedly seeking to parting ways from Western financial organizations after Western nations had decided to shrug it off the then-Group of eight, currently stands as the G7 or Group of Seven.

Russia to dump entire assets held in US Dollar from NWF

On top of that, following reveal of the move later this week, speaking at the St. Petersburg International Economic Forum, Russ Finance Minister Anton Siluanov said in a statement, “Like the central bank, we have decided to reduce investments of the NWF in dollar assets,” adding that the amendments, which would likely to be concluded within a month, would include a steep decline of assets held in US Dollar and British Pound, while the National Wealth Fund would hold 40 per cent of its assets in Euros, 30 per cent in Chinese Yuan alongside 20 per cent in gold.

Besides, Japanese Yen alongside British Pound, each would account for five per cent of NWF assets, while share of US Dollar would be reduced to zero from a prior 35 per cent and the share of British pound would be halved.

Gold will be added into the $176-billion fund founded back in 2008s for the first time. Meanwhile, adding that the rest of the world including a large section of capitalist economies had been slashing down their US Dollar assets sharply over past two decades, a geopolitical strategist in BCA Research in Montreal, Canada, Matt Gertken said, “The rest of the world has also sharply reduced the dollar share of FX reserves over the past two decades but Russia has a special interest in doing so quickly and undermining global confidence in the dollar because it is a Petro-state and a strategic rival of the United States.