The country chose the right money
The international (gold and foreign exchange) reserves of Russia may renew their historical maximum already this month. The previous record was set back in 2008. Experts say that our country has chosen the right investment instruments: the euro and gold, which occupy the largest share in the reserves, have significantly increased in value. However, the accumulated billions in the Russian economy will not work – international reserves serve as a “stash” for the payment of external debts, so their growth has little effect on the welfare of ordinary Russians.
To the greatest extent, the European currency and the “yellow metal” had their hands on the expected new record. The euro exchange rate since the beginning of the year has grown by more than a quarter. Quotes of a troy ounce of gold are also close to absolute figures. According to the latest data, the share of both investment instruments in the international reserves of our country is more than half of the total. The growth of their value ensured a positive change in the total amount of Russian savings, exceeding $ 591 billion.
The volume of Russian international reserves is capable of reaching the record $ 600 billion even before the end of summer. Neither the euro nor gold are going to fall in price, which can not be said about the dollar, the rate of which, due to the consequences of the coronavirus, which affected the United States to a greater extent than Europe, may seriously sink.
Note that it was not only Russia that managed to make the right bet in accumulating reserves. Thus, the share of gold in the international reserves of the Federal Republic of Germany currently reaches 75%. The United States has the same. The jump in quotations of the “yellow metal” provided the Americans and Germans with even more significant income than Russia. However, many EU countries have not changed the volume of gold reserves for decades, and since 2012 our country has increased its resources by almost 2.5 times.
Meanwhile, there is some kind of paradox: there is a coronavirus crisis on the market, and the reserves, in spite of everything, are breaking records. How so? On the one hand, I was really lucky with the investment instruments in which we invested. On the other hand, it is not clear what benefit Russia can derive from the fact that new maximum values for the size of international reserves have been reached. According to opinion polls, most Russians would not mind if at least a part of the money resources “stored” in the stash of the government and the Central Bank (it is he who manages international reserves) would be simply distributed to citizens in the form of new subsidies and preferences.
However, this will not happen. The main task of international reserves is to ensure the stability of the ruble and the payment of external debts. “In 2008, the Central Bank practically provided loans to leading companies that needed to refinance external liabilities. First of all, reserves serve as a guarantee of financial stability and sovereignty of the country in difficult geo-economic times, ”said Alexander Razuvaev, head of the IAC“ Alpari ”.
At the same time, Russia’s external debt is now quite modest – at the beginning of the year it amounted to a little more than $ 490 billion. The available international reserves are more than enough to pay off all obligations of both the state and companies, even if creditors present their bills at the same time. This fact is an important indicator of the stability of the Russian financial system, which both international rating agencies and foreign investors pay attention to.
“Not so long ago, the accumulations of the National Wealth Fund also reached a record value – $ 120 billion. Russia is actually sitting on a bag of money,” says Sergei Suverov, investment strategist at Arikapital Management Company. – However, all financial risks associated with the payment of external debt have now been removed – and Russia does not have an urgent need to increase its gold and foreign exchange reserves. But in their person an additional resource appears, some of which could be used in the domestic economy. “
Russia chooses the right money