From Russia with Love
The Russian central bank has announced it now holds more gold than U.S. dollars in its reserve, striking a blow to the American currency and confirming Putin’s strategy of exiting the greenback.
For the first time in its history, the Russian central bank now holds more gold than U.S. dollars in its vault.
As you can see on the chart below, the Central Bank of Russia has been slowly accumulating the yellow precious metal which has now surpassed its U.S. dollar reserve.
Today, roughly 60% of all foreign bank reserves are U.S. dollars, and about 40% of the world's debt is denominated in dollars (according to data from the International Monetary Fund).
The U.S. dollar is still clearly the dominant currency by far.
But are we slowly seeing an erosion in its dominance?
And is Russia's move the sign of a larger trend, or is it only an epiphenomenon?
Everyone will come to their own conclusion.
But as a value reserve, it's hard to argue that Russia's central bank has made a foolish move. You don't need to have a Ph.D. in economics to understand that it makes more sense to hold an asset that cannot be printed out of thin air!
Why not exchange your fiat currencies for a physical asset too? 😉