Why is Russia increasing its foreign exchange reserves?

Russia continues to boost its foreign exchange reserves, despite economic pressure from Western sanctions.

Russia's foreign exchange reserves reached $587.5 billion as of June 16. (Source: DW)

According to a report by the Central Bank of Russia, the country's foreign exchange reserves reached $587.5 billion as of June 16.

According to the bank's calculations, international reserves increased by $1.8 billion in just one week, from June 9-17, equivalent to 0.3%, largely due to "positive market revaluation".

In May 2023, reserves fell by 1.95% – equivalent to $11.6 billion – to $584.1 billion, after surging above $600 billion in April.

Russia's foreign exchange reserves reached a historic high of $643.2 billion on February 18, 2022, but have since fallen by 8.4% over the past year, reaching $577.5 billion on the first day of this year (January 1, 2023).

Approximately half of Russia's foreign exchange reserves held overseas were frozen by Western central banks last March – part of sanctions imposed on Moscow over its special military operation in Ukraine.

The remaining assets, including gold and foreign currency, as well as the Chinese yuan, are held domestically.

Source: https://baoquocte.vn/nga-tang-cuong-du-tru-ngoai-hoi-de-lam-gi-232311.html