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25 April 2024
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BRICS: Russia Makes Major Financial Announcement

The global economic landscape has undergone a massive shift over the last several years. One of the most important catalysts of that change has been BRICS, whose 2024 Chairmanship holder, Russia, has made a major financial announcement regarding its financial plans for the coming year.

The country’s Finance Minister said that it will more than double its acquisition of both gold and foreign currency throughout April. According to a Reuters report, the ministry said it would “buy the equivalent of 235.3 billion roubles ($2.6 billion), or 11.2 billion roubles per day” of foreign currency and gold.”

us dollar pound euro yuan china brics currency
Source: Reuters / Jason Lee

Also Read: BRICS: Russia & China Driving Global Shift From US Dollar to Gold

Russia to Double Gold and Foreign Currency Acquisition in Coming Month

Throughout the last year, the global economic sector has embraced a shift in perspective. Amid concerns regarding the US dollar, Central Banks across the globe have further embraced alternative currencies, and gold acquisition as a haven asset. Specifically, this diversification has worked as a protection against the greenback’s fragile position.

That shift was first enacted and brought to the forefront by China and Russian action. Now, amid BRICS de-dollarization plans, Russia has made a major financial announcement regarding its finance strategy. The country states that it intends to double its gold and foreign currency acquisition in the month ahead.

The report notes that the Central Bank is conducting “forex interventions” on behalf of the Finance Ministry. Moreover, they note that they have begun selling forex- or foreign currencies- to make up for funds that were spent “from Russia’s rainy-day wealth fund in 2023.”

Also Read: BRICS: China Unveils Blockchain Project to End US Dollar in Trade

Therefore, Russia is set to be a net foreign currency seller throughout the coming month. However, that will be at a far lower volume than took place in March. Overall, the decision to double gold and foreign currency purchases will bring the overall net foreign currency interventions closer to zero.

Conversely, the move still is important to the overall global dynamics of foreign exchange currency. As previously stated, Russia and China were the drivers of gold acquisition that pushed the asset to landmark prices in 2024. Moreover, they have driven local currency promotion through the BRICS bloc as a pinnacle model of economic infrastructure.

All of these realities will continue to challenge the global reserve status of the US dollar in the long term. Moreover, the United States debt increase is a cause for concern. Additionally, the greenback should continue to see decreases in overall acquisition globally in its current state.

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