Russia's Central Bank Dumps Gold Reserves Amid Fiscal Crisis

Russia's central bank has drastically reduced its gold reserves over the past seven months, selling off nearly 1.6 million ounces of bullion.

This represents a significant shift for an institution that was once the world's largest sovereign buyer of gold, purchasing much of Russia's domestically mined output before pausing acquisitions in early 2020.

The central bank's gold holdings now stand at their lowest level since January 2020, with a value of $33.7 billion in losses over the same period.

This drawdown is tied to Russia's fiscal position, as the Finance Ministry sells gold and foreign currency from the National Wellbeing Fund to help plug budget shortfalls caused by weaker energy revenue.