Russia will continue to invest public funds in US Treasury bonds, as today US securities are the most reliable and profitable," Russian financiers explained statistics published by the US Treasury in an interview with Vestnik Kavkaza.
According to the US financial authorities, in June Russia invested another $2.7 billion US bonds. Now the investment portfolio is $90.9 billion. The Russian Central Bank has been making such decisions for the third consecutive month in a row.
Profitability of these bonds is a little above zero: during a decade debt securities show profitability of 1.5%, and two-year about 0.74%. Nevertheless, the experts underlined in an interview with a VK correspondent that it is the best way in this situation.
Thus, chairman of the National Currency Association (NCA), Dmitry Piskulov, pointed out that Russia and beyond will continue to invest in US bonds, as the Ministry of Finance has chosen such financial policy.
"Export earnings are generally in dollars and, respectively, and foreign currency earnings are also in dollars. The Ministry of Finance buys currency and invests it in the tools that are allowed by the internal documents of agencies and available in accordance with the legislation. From the viewpoint of the Ministry of Finance, US bonds are considered reliable, and their growth is in the investment portfolio," he said.
Professor of the department of Stock Market and the Market of Investments at the Higher Sshool of Economics, Alexander Abramov, said that the Central Bank manages foreign reserves so as the choice for their investment is very limited today.
"In fact, it is allowed to invest in securities of several countries, particularly the United States, Switzerland and the UK, as well as Canada, Japan and the European Union. We almost have no any other choice. In general, it is usual situation when the Central Bank continues to spend reserves to purchase US securities. All the countries have very low interest rates, and the US ones are extremely reliable,’’ he told.
