Russian central bank buys gold because it can do it with depreciating rubles

From Sputnik News, Moscow
Thursday, September 29, 2016

Russia plans to stock up on about 200 tons of gold this year, nearly matching the 208 tons it purchased in 2015. That's according to Anton Navoi, the deputy head of the statistics department at the Russian Central Bank. Navoi explained that it's profitable for the state to buy the precious metal, since Russia is a world leader in its production.

Speaking at a conference on Wednesday, the official said that "last year the central bank purchased 208 tons of gold. This year it will purchase around 200 tons." Gold currently accounts for around 16 percent of the country's foreign exchange reserves, Navoi noted. And while there is no direct effort to increase the precious metal's share in Russia's reserves, it seems likely to happen, as the purchase of gold is profitable for the country.

"The central bank is buying gold because it is profitable. We are a country that is third in the world in terms of gold production, and we have the ability to buy it using our national currency, in contrast to other countries, which do not have such an opportunity," the banker concluded. ...

... For the remainder of the report:

https://sputniknews.com/russia/20160929/10458...ld-stock-up-...