The expert explained the reduction of the Central Bank's gold reserves

Borisova: reduction of gold reserves does not threaten the financial stability of the Russian Federation

Wed, 03/25/2026 - 01:00

Photo: Global Look Press/Frank Hoermann/SVEN SIMON

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The sale of 500,000 troy ounces of gold in two months should not be considered as a sign of a lack of foreign currency liquidity at the Bank of Russia, Olga Borisova, associate professor of Corporate Finance and Corporate Governance at the Financial University under the Government of the Russian Federation, said in an interview with Izvestia. Despite the increase in currency swap rates and the forecast for the structural deficit, since February 2026, there has been a dynamic increase in exporters' revenue due to an 18.03% increase in oil futures over two months.

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According to the expert, the sale of reserves is related to standard management practices. Over the year, the price of gold increased by 63.93%, and in March it broke through a historical maximum of $ 5,600 per ounce, showing an unprecedented increase of 212%, the source recalled.

"This allowed us to record excess profits, and spend the funds received on controlling volatility, running costs and maintaining liquid foreign exchange reserves," she stressed.

The reduction of gold reserves does not pose serious problems for Russia's financial stability, Borisova added. According to a number of assessment approaches, the volume of gold reserves of $25 billion is sufficient to ensure stability in the country. The value of the existing reserve of 74.3 million ounces exceeds this level by almost 16 times.

We should also not forget that the absolute volume of Russia's gold and foreign exchange reserves is a record, the expert said. According to the Central Bank, as of March 1, 2026, it amounted to $809.3 billion.

"In this regard, the reduction of the gold reserve to a four-year low is not critical for the overall stability of the financial system of the Russian Federation. Due to rising gold prices, all frozen assets have been compensated, which allows Russia to develop," the expert concluded.