Russia Has Found No Place Yet to Invest Reserves After Sanctions - Bloomberg

Russia Has Found No Place Yet to Invest Reserves After Sanctions - Bloomberg

Russia’s central bank conceded it’s found no clear alternatives to the world’s major reserve currencies after sanctions over the war with Ukraine left it in possession of only yuan and gold.

Before the invasion, the Bank of Russia spent years reducing exposure to the dollar, bringing its share to just under 11% at the end of last year. But more than a third of the total was in euros -- on top of additional investments into currencies such as the British pound and yen -- making it possible for international governments to seize about half of the stockpile in retaliation for President Vladimir Putin’s attack.

More than a month into the war, the central bank has yet to identify other options, according to Governor Elvira Nabiullina. Speaking Monday in front of a parliamentary committee in Moscow, she said it was too early to draw lessons for what Russia should do differently.

“We need to look toward the future, but at the moment I am struggling to give specific suggestions,” she said. “The list of the countries issuing liquid reserve currencies is limited and they are the ones that have taken hostile measures and limited our access.”