Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

Bloomberg: Russia will Bypass Saudi Arabia in Gold and Foreign Exchange Reserves
August 15, 2019 16:49

For the first time in eight years, Russia can enter the list of four countries with the largest foreign exchange reserves, Bloomberg predicts. This may become a “lever of pressure” on OPEC countries with which Russia is negotiating on reducing oil production.

For the first time in eight years, Russia may bypass Saudi Arabia in terms of gold and foreign exchange reserves and enter the top four countries in terms of this indicator, Bloomberg writes. According to the International Monetary Fund, China ranks first, Japan - second, and Switzerland  - third.

Bloomberg recalls that Russia's reserves grew by 45% in four years and reached $ 518 billion, while Saudi reserves fell to $ 527 billion. Due to low oil prices, Saudi Arabia spent resources on social security, Bloomberg notes. Russia at the same time maintains a budget surplus, fearing new sanctions.

“[Russian President Vladimir] Putin intends to minimize the risk of refinancing for Russia, and therefore supports responsible fiscal policy,” Charles Robertson, chief economist at Renaissance Capital Investment Company comments. “The Saudis, on the contrary, switched from a budget deficit to a surplus earlier. Now they are glad that in difficult conditions they can use these savings, ” he said.

Read More Articles about Russian Business

The Russian ruble rose in the ranking of the most volatile currencies after new sanctions

According to the budget rule, the Ministry of Finance is now buying foreign currency and forwarding it to the budget for all income from the sale of oil at a price of over $ 40 per barrel. In Saudi Arabia, such a mechanism works at an oil price about twice as high, Bloomberg notes. Therefore, at the current price of Brent oil futures, Russia, unlike Saudi Arabia, “is likely to be able to further increase its reserves for a rainy day,” the agency writes.

Prices and nerves 

A similar advantage over Saudi Arabia, the largest OPEC member in terms of oil production, could become a “lever of pressure” on the countries of the organization with which Russia is negotiating to reduce oil production, Bloomberg notes.

“OPEC can no longer ignore Russia because of the importance of its role as an exporter of oil and its economy as a whole,” Elina Rybakova, deputy chief economist at the Institute of International Finance in Washington, notes.

Author: Anna Dorozhkina

Tags: Russian economy Russian business Russian companies   

Next Previous

You might also find interesting:

Russia at the Paralympic Games 2012 - Results Economic Forecasts: Russia Experiences a Recession The Central Bank Revealed Information on Transactions of Russian Banks Vegetables And Fruits Will Be Imported From Syria EU's Further Economic Sanctions on Russia

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Balashov  Moscow  Candies  Halloween  Sevastopol  Corvee  Russian Cinema  Circle of Light  invest  Nason-city  Oleg Akkuratov  wedding  Mercedes-Benz Fashion Week Russia  Arts and Crafts  Kirov Region  Fairs in Moscow  Russian business  Moscow Theatres  criminality  Pussy Riot case  Pobeda  Russian ballet dancers  Frescos  National Payment System  Franz Kafka  Pyotr Kotov  FIFA world cup 2018 tickets  Smoking in Russia  Tatarstan  Japanese Film Festival  Rostov Region  tarvel to Russia  Perm Krai  Circus of Miracles  St. Petersburg  Exhibitions in Moscow  travel to Russia  Festivals in Moscow  Russian regions  Satellites  Moscow Museum of Modern Art  Greece  Active Travel  Solovki  Elena Guro  Festivals  Russian Orthodox Church  tourism  Russian tourism  bus stops 

Travel Blogs
Top Traveling Sites