The value of Russia’s gold holdings surpassed $200 billion for the first time ever in October, while bullion’s share in the country’s international reserves increased to 32.9%, according to the central bank.
The Bank of Russia reported on Friday that the value of its gold holdings grew by almost 4% last month, breaking the record set in September. The dollar value of the reserves reached $207.7 billion as of November 1. The gold price rose by about 4% in October after reaching a record-high of $2,800 per ounce during the month. Gold prices have been fluctuating lately amid rising geopolitical tensions.
The share of monetary gold in Russia’s international assets last month was the highest since November 1999, when it reached 34%. Overall, the highest level in the country’s modern history was recorded in January 1993, at 56.9%.
The central bank also said the country’s international reserves stood at $631.6 billion as of November 1, down by $2.1 billion from the previous month.
Nearly half of Russia’s international reserves were frozen in the West in early 2022 as part of Ukraine-related sanctions. The Bank of Russia has not provided a detailed breakdown of what was immobilized.
The portion of Russia’s reserves that was not frozen consists of gold and foreign currency held within the country, as well as holdings of Chinese yuan.
Bank of Russia Governor Elvira Nabiullina said earlier the country’s financial stability will not be affected if the West seizes its frozen assets. The regulator has been diversifying its forex reserves for several years, and is currently conducting operations with reserves that are not affected by sanctions, according to Nabiullina.
Moscow has denounced the freezing of the central bank assets as illegal and has said that any actions taken against its sovereign funds would amount to “theft.” The Kremlin has warned of retaliation if the funds are confiscated, stressing their seizure or any similar move would violate international law and undermine Western currencies, the global financial system, and the world economy.