In wake of sanctions against Russia, countries began to return gold reserves to their homeland
An increasing number of countries are repatriating gold reserves as protection against the sort of sanctions imposed by the West on Russia – as reported by RIA Novosti with reference to Reuters
Almost 60 percent of central banks and sovereign wealth funds find gold more attractive under the new conditions, and 68 percent (compared to 50 percent in 2020) were keeping their reserves at home, according to a survey conducted by Reuters.
“Last year’s freezing of almost half of Russia’s $640bn of gold and forex reserves by the West in response to the Russian-Ukrainian conflict created a precedent,” the publication reads.
The article also reports that geopolitical concerns, combined with the opportunities of emerging markets, are prompting some states to gradually abandon the US Dollar.
According to 7 percent of respondents, rising US debt is also negative for the greenback, although most still see no alternative to it as the world’s reserve currency The potential in China’s Yuan is seen by 18 percent (against 29 percent last year).
“Nearly 80 percent of the 142 institutions surveyed see geopolitical tensions as the biggest risk over the next decade,” Reuters concluded.
