It seems that Russia has just attempted to strike another blow against the greenback.
The country announced this week it will completely remove all US dollar assets from its National Wealth Fund (NWF) and add gold to it for the first time on record.
The NWF is Russia’s so-called rainy-day fund which accumulates the country's oil revenue and has been initially designed to support the pension system. As of May 1, it was worth $185.9 billion.
Putting its money where its mouth is (so to speak), the fund will add a 20% gold holding to its existing assets, and update its fiat currency holdings to 40% in euros and 30% in yuan. Japanese yen and British pound will make up 5% each.
The move comes as part of a broader strategy outlined by Putin to "de-dollarize" the Russian economy.
The country announced this week it will completely remove all US dollar assets from its National Wealth Fund (NWF) and add gold to it for the first time on record.
The NWF is Russia’s so-called rainy-day fund which accumulates the country's oil revenue and has been initially designed to support the pension system. As of May 1, it was worth $185.9 billion.
Putting its money where its mouth is (so to speak), the fund will add a 20% gold holding to its existing assets, and update its fiat currency holdings to 40% in euros and 30% in yuan. Japanese yen and British pound will make up 5% each.
The move comes as part of a broader strategy outlined by Putin to "de-dollarize" the Russian economy.
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