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Russian De-dollarization & Gold Acquisition
Over the last decade, Russian Federation has shown consistency in its Gold Reserve Growth, but the year of 2018 reflected an outstanding performance when Russia acquired 42% percent of all purchases by central banks worldwide.
According to Bloomberg, Russian Gold Reserves have nearly quadrupled over the past ten years, and 2018 marked the most "ambitious year yet" for Russian gold buying. Meanwhile, the Russian Central Bank is mass-dumping its Treasury holdings. Coincidence?
As of April & May of 2018, Russia's central bank liquidated $81 billion in Treasuries, almost the entire holdings.
Soon after Russia fell off the Largest Treasury Holders List. Furthermore, as the US imposed more economic sanctions, being already on bad terms with Russia, Vladimir Putin continued the country's de-dollarization using alternative reserves such as the Chinese Yuan and Gold.
As it is shown on a diagram below provided by the Finance Ministry, Union of Gold Producers of Russia, 2018 Russia's Gold Purchases surpassed its own Gold Production for the first time. The Central Bank of the Russian Federation might continue importing more gold, which could have a positive impact on the global price.
