Russia’s national wealth fund has recently announced that it intends to remove all US dollar assets from the fund, and will instead accept assets in rubles and other Russian assets. It’s worth noting that the Russian economy has been suffering under a combination of sanctions, falling oil prices and economic uncertainty in the West, all of which have impacted the value of the ruble.

The National Wealth Fund of Russia, also known as the Russian Reserve Fund (RRF), is a $600 billion sovereign wealth fund that was set up by Vladimir Putin in 2008 in order to stimulate the national economy. The plan was to channel national wealth into long-term, low-risk investments, such as bonds, government bonds, equities, the stock market and so on. However, it has become clear that the RRF is no longer the unalloyed success that Putin envisaged it would be. In the first quarter of 2018, the RRF was down by 1.5%.

The Russian government announced today that it will begin removing all US dollar assets within its $600 billion National Wealth Fund (NWF, formerly known as the Reserve Fund) in order to improve the exchange rate of the national currency – the ruble – with the US dollar.

word-image-2220 Russia has announced that US dollar assets will be withdrawn from its sovereign wealth fund as a result of tougher US sanctions against Moscow. The fund, currently worth about $600.9 billion, is part of Russia’s international reserves.

Russia steps up efforts to de-dollarise

Russian Finance Minister Anton Siluanov announced Thursday at the St. Petersburg International Economic Forum that dollar assets will be completely removed from the National Welfare Fund (NWF) as Washington continues to impose sanctions on Moscow. According to a translation from Reuters, he told reporters: Like the central bank, we decided to reduce NWF’s investments in dollar-denominated assets. The finance minister also said the changes will take place over the next month, after which the fund is expected to hold the euro (40%), yuan (30%), gold (20%), Japanese yen (5%) and sterling (5%). The dollar portion of the fund will be replaced by the euro, yuan and sterling. Russia’s sovereign wealth fund was originally created to support the country’s pension system. It is part of Russia’s international reserves. According to the publication, the counter stood at $600.9 billion on May 27. Timothy Ash, senior emerging markets strategist at Bluebay Asset Manager, describes Russia’s decision to let go of the dollar as highly political. He thinks the move is meant to send a message to the Biden administration with : We don’t need the United States, we don’t need dollar transactions, and we are invulnerable to new U.S. sanctions. He noted that this could also be interpreted as a sign that Moscow expects further sanctions from the United States. Russian President Vladimir Putin has made de-dollarization a key policy of his country to make the Russian economy less dependent on dollar assets. Long-term efforts to make Russia less vulnerable to US sanctions are taking place against a backdrop of deteriorating relations with Washington. In January, Russia’s central bank released a report showing that gold had surpassed the U.S. dollar for the first time in the country’s reserves. In addition, Bitcoin News reported in August that Russia and China are working together to reduce their dependence on the U.S. dollar, as trade payments in U.S. dollars between the two countries have fallen below 50 percent. How about Russia withdrawing US dollar assets from its sovereign wealth fund? Let us know your comments in the section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.In recent days, the Russian government has been actively promoting the idea that the US dollar is losing its hegemony in the international financial system, and that the country should begin liquidating its massive dollar-denominated holdings in its National Wealth Fund.. Read more about russia de-dollarization and let us know what you think.

bitcoin pricegold pricede-dollarisationde dollarizationrussia, china de dollarizationrussian national wealth fund,People also search for,Privacy settings,How Search works,Dedollarisation,De-dollarisation,de dollarization,russia, china de dollarization,russian national wealth fund,russia de-dollarization,de dollarization news,de dollarization 2021,de dollarization india

You May Also Like

British MP says Ethereum ‘flippening’ is taking place, calls for a ‘safe space’ for crypto |

A British Member of Parliament (MP) has claimed that the ‘flippening’ –…

How can Exchanges Capitalize on Dogecoin Mania to Propel Altcoins to New Heights?

If you’re familiar with the internet in the last few days, you…

Investing In SKALE (SKL) – Everything You Need to Know

As a follow-up to my article about SKALE’s (SKL) “Lightning Network” testnet…

As Crypto Interest Winds Down Bitcoin’s Daily Transaction Rate Plummets to Two-Year Lows – Bitcoin News

Bitcoin transactions have reached an all-time low, and it appears the interest…