A recent report from a leading business newspaper outlines a significant shift in Russia’s sovereign investment strategy. The National Wealth Fund (NWF) has boosted the yuan’s share in its currency mix to 80 percent, signaling a broad reorientation away from traditional reserve currencies. The same report notes a notable rise in gold holdings, which now account for 40 percent of the fund’s assets, underscoring a dual emphasis on diversification and capital preservation. The changes come as part of a broader restructuring of the reserve currency framework, with the yuan entering the NWF’s balance sheet in 2021 and contributing to a rebalancing that reduced the dollar and euro’s presence from 45 percent to 35 percent. An amendment accompanying these moves allows funds to be invested directly in precious metals, reinforcing the role of gold in Russia’s strategic asset allocation.
In the wake of these adjustments, the dollar’s role within the NWF appears to be waning, while gold surpasses 20 percent of the fund. The euro and yuan positions have widened to roughly 40 percent and a bit over 30 percent, respectively, indicating a complex reshuffling designed to enhance resilience in a volatile global financial environment. These shifts reflect a broader trend toward currency diversification among national wealth reserves, with policymakers weighing the benefits of a wider mix against the familiarity and liquidity of established currencies.
In a related assessment, former Russian Finance Minister Anton Siluanov projected a contraction in the country’s gross domestic product (GDP) for the current year, estimating a decline of about 2.7 percent. He also asserted that officials would pursue policies aimed at steering GDP back toward positive growth in the following year, emphasizing a commitment to stabilizing the economy amid ongoing pressures.
Meanwhile, Prime Minister Mikhail Mishustin commented on the year-to-date performance, noting that after eleven months in 2022 Russia’s GDP had fallen by a little over two percent compared with the previous year. The remarks highlight a narrative of gradual improvement or stabilization, even as the cumulative annual figure remains negative. The discussion around these macro indicators illustrates how leadership views the path to recovery, balancing short-term headwinds with longer-term objectives for growth and reform.