Russia keeps amassing forex reserves

Holdings grew by more than $5 billion in a single week, according to the Central Bank

Russia’s foreign currency reserves have surpassed $580 billion, the Bank of Russia announced on Thursday.

According to the regulator, holdings rose by $5.2 billion or 0.9% in the week to December 16, to reach $581.7 billion. The increase was attributed to a positive market revaluation.

Roughly half of Russia’s foreign currency reserves were frozen by Western central banks in early March as part of sanctions over the Ukraine conflict. The remaining holdings consist of gold and foreign currency held within the country, as well as Chinese yuan assets. Prior to the conflict, on February 18, Russia's forex reserves reached a historical maximum of $643.2 billion.

Russian Prime Minister Mikhail Mishustin has accused the West of discrediting the idea of international reserves, by using the dollar as a weapon in the sanctions war against Russia.

READ MORE: Russia now fourth largest forex reserve holder

Russia's international reserves are highly liquid foreign assets held by the Bank of Russia and the government. They consist of monetary gold, Special Drawing Rights (SDR) within the IMF, and funds in foreign currency. Last month, Russia jumped to fourth place among the world’s largest economies in terms of forex holdings, after China, Japan and Switzerland.

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