Russia’s Central Bank has assured that all gold from gold and foreign currency reserves is in its vaults on the country’s territory, according to the files released by the regulator on Friday.
"All gold from our gold and foreign currency reserves is in the vaults of the Bank of Russia on the territory of our country," the Central Bank said.
According to the regulator, gold and foreign currency reserves are an instrument, using which the Central Bank may protect the economy from external crises. In difficult situations they ensure the currency debt payment, critical imports, stabilize the forex market. "Storing the reserves inside the country or spending them inside the country means having no reserves, no protection from external crises at all. This is the way the country lived in 1992-1999," the Bank of Russia said.
Back then the country was exposed to external threats, this being an almost unceasing financial crisis, the regulator explained. "This is why the Central Bank is trying to accumulate reserves in the good times and form a structure of reserves so that it would enable it to respond to various types of crises," the Bank of Russia noted.
