Russia will unseal its $88 billion Reserve Fund and use it to acquire rubles. reports Bloomberg.
“Together with the central bank, we are selling a part of our foreign-currency reserves,” Finance Minister Anton Siluanov said in Moscow yesterday. “We’ll get rubles and place them in deposits for banks, giving liquidity to the economy.”
This makes sense on a number of levels. The US dollar is very overvalued at present, to sell dollars for rubles makes sense. Secondly, by funding Russian banks with purchased rubles, rather than printing new rubles, Russia will put some stability under the ruble.
The entire 500 billion rubles or part of the amount will be converted in January-February through the central bank, according to Deputy Finance Minister Alexey Moiseev.
Could Putin's end game, once he ditches Russia's dollar holdings, to make the ruble convertible into gold? The possibility can not be ruled out, especially with the very smart and careful Elvira Nabiullina running Russia's central bank.
Robert, we would love to hear your take on what would happen if we woke up and read that Russia will now back the rouble with gold. What would financial markets do and what would the western bankster do?
ReplyDeleteIt's not what the "financial markets do and what would the western bankster[s] do", but what the US government would do for their bosses (western banksters) or is currently doing. War and more war.
DeleteMy guess is the USA would contrive a pretext for bombing Russia. Can't have a country that doesn't want to finance our inflation by not using dollars, or worse yet, somebody that creates a sound currency that would undermine all fiat.
DeletePrint up Rubles and take them to the Russian Central Bank's sell window.
Delete"... that Russia will now back the rouble with gold"
DeleteAnd what if Russia finally finds the lapis philosophorum, the stone of the philosophers and starts to produce gold from sh.t?
And what if the dream of Campanella will be fulfilled in Russia and Russia finally achieves Communism?
And what if Lysander drinks less and avoids drugs?
Is this the russian foil hat engineers, amateur economic site? I was referred here by RT.
ReplyDelete