Russia news: Putin buys GOLD to weaken US Dollar after Trump tweets about its strength
EXCLUSIVE: Russia is stockpiling gold as the country continues to sell US Treasury bonds in response to renewed US Sanctions. Since July President Vladimir Putin has added 26 tons of gold to Russia’s reserves, equivalent to roughly $1billion.
By AMALIE HENDEN
Express.co.uk
Sat, Sep 8, 2018
In total Russia has 2,170 tons of gold, worth about $83.6 billion, making the Russian gold reserve the fifth biggest in the world.
In fact, Moscow traded so much gold in July that Russia now has a larger gold reserve than China.
According to figures by the World Gold Council, the Russian and Chinese gold reserves have increased from 400 tonnes to nearly 4000 tonnes in just ten years.
And as Russia continues to ramp up its gold buying, the Central Bank of Russia is getting rid of the US Dollar, a strategy believed to be in response to sanctions placed against Russia in 2011.
On August 16, US President Donald Trump tweeted “Money is pouring into our cherished DOLLAR like rarely before.”
The tweet came after the US dollar reached a 14-month high against an extensive amount of other major currencies just days earlier.
The strengthening of the US dollar has caused not only the Russian rouble but also the Turkish lira and Iranian rial to weaken, both of whom have joined Russia in selling US dollars and purchasing large amounts of gold instead.
The question is if the gold prospecting of Mr Putin, Mr Erdogan and Mr Rouhani will pay-off in the long run or put a further strain on the countries economy.
The Rest…HERE
