The Bank of Russia has achieved the goal of managing international reserves by ensuring the optimal combination of their safety, liquidity and profitability. This is stated in a press release by the Accounts Chamber on the results of the analysis of the regulatory framework, as well as the organization of internal control and internal audit in the management of gold and foreign exchange reserves of the Bank of Russia (available from Rossiyskaya Gazeta).
“The Central Bank has created key elements for managing foreign exchange reserves, carried out measures to improve the regulatory and methodological base, created conditions for fulfilling the assigned function,” the Accounts Chamber noted. The department also reported that they formulated proposals for improving the legal regulation of the system for managing the international reserves of the Russian Federation.
According to the Bank of Russia, as of September 1, 2021, the volume of international reserves amounted to almost USD 618.2 billion. This is a historical record – during the entire existence of the Bank of Russia, such indicators have not been achieved. Since the beginning of 2015, the value of reserves has grown by more than USD 235 billion. By October 1, the level of international reserves fell to $ 614.1 billion, follows from the monthly data of the Central Bank.
Russia now ranks 5th in the world in terms of international reserves, the Accounts Chamber notes. Only China, Japan, Switzerland and India are ahead. “In recent years, Russia has noticeably increased the share of gold in its international reserves – from 7.8% at the beginning of 2014 to 23.3% at the end of 2020,” the Accounts Chamber stated. In addition to gold and foreign currency, Russian reserves include special rights borrowings: a reserve tender issued by the International Monetary Fund (IMF), which also increased significantly, from $ 7 billion to $ 24.6 billion.
As the head of the Bank of Russia Elvira Nabiullina said earlier at the annual meeting of the IMF, the main lesson she learned during the coronavirus crisis is the need for reserves. “Capital stocks create regulatory wiggle room. Emerging economies now have more wiggle room, primarily due to the fact that they have been able to build up reliable capital stocks over the past ten years. properly, they can be quickly lost. Therefore, we need to approach their use carefully. This is especially important for a country like Russia, where inflationary expectations are not anchored, “she stressed.