The Russian Ministry of Finance has introduced a new regulatory framework governing the National Welfare Fund (NWF), reshaping its asset allocation to reflect a shift away from certain international holdings. In this refreshed structure, investments in US dollar-denominated assets are restricted, signaling a deliberate reorientation of the fund’s currency exposure. Updates published by the ministry outline these changes, emphasizing the intent to align the NWF with Russia’s broader financial and geopolitical objectives while maintaining prudent risk management and liquidity for national needs.
Under the revised policy, the share of assets held in currencies associated with states deemed unfriendly has been reduced, while new ceilings have been set to guide asset composition. The official thresholds designate a 60% allocation to the Chinese yuan and a 40% allocation to non-cash gold, representing a meaningful increase in yuan exposure and a corresponding rise in gold holdings compared to prior levels. Previously, these allocations stood significantly lower, with the yuan and gold comprising smaller portions of the fund’s portfolio. The move underscores a strategic pivot toward currencies and assets perceived as more resilient in the face of global financial tensions, and it signals a long-term view on reserve diversification as described in the ministry’s communications.
Historical statements from key Russian financial figures have supported this direction. Former Finance Minister Anton Siluanov indicated that, starting in 2023, the NWF could be replenished with Chinese yuan, describing the yuan as a friendly currency with reserve currency characteristics that surpass other options in certain respects. Subsequent reporting from the business press noted ongoing discussions within the Ministry of Finance about further increasing the yuan’s share within the fund’s currency structure, with rumors suggesting potential rises toward 80% for the yuan and, simultaneously, maintaining or elevating the gold component. These developments reflect a broader narrative about diversification, financial sovereignty, and the pursuit of assets that can operate effectively within a mixed global monetary landscape.