On January, the Central Bank of Russia sold 300,000 ounces of gold reserves, worth 1.4 billion dollars

Wallstreetcn
2026.02.21 05:52
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The Central Bank of Russia sold 300,000 ounces of gold reserves in January, expecting to cash out approximately $1.4 billion. This is the first reduction since October of last year, aimed at offsetting the country's budget deficit. Although the holdings decreased to 74.5 million ounces, thanks to the surge in gold prices, the total value of Russia's gold reserves actually skyrocketed by 23% in January to $40.27 billion

As gold prices fluctuate at high levels, the Central Bank of Russia has chosen to "cash in" by selling off its gold reserves to fill the fiscal gap.

According to data released by the Central Bank of Russia this Friday, the country's gold holdings decreased by 300,000 ounces in January, dropping to 74.5 million ounces. This marks the first decline in the country's gold reserves since October of last year.

The timing of this sale is extremely precise. In January, global gold prices frequently set historical records, with an average price reaching $4,700 per ounce.

If calculated at the market average price, the 300,000 ounces of gold sold by the Central Bank of Russia is expected to bring approximately $1.4 billion (about 10 billion RMB) in revenue to the national budget.

"Mirror Operation" Under Fiscal Pressure

This sale is not coincidental but rather a predetermined strategy adopted by the Russian Ministry of Finance to cope with budgetary pressures.

As early as November last year, Xinhua News Agency reported that the Central Bank of Russia confirmed to the Russian International News Agency that it had begun selling physical gold from its reserves to meet the funding needs of the national budget.

Bloomberg's latest report pointed out: "The Central Bank of Russia began to utilize its gold reserves last year as part of a so-called 'mirror operation' related to the Ministry of Finance's sale of assets from the National Wellbeing Fund."

In the first two months of 2025, the Russian Ministry of Finance has already spent 419 billion rubles (approximately $5.5 billion) from the National Wellbeing Fund. Faced with an expanding budget deficit and declining oil and gas revenues, selling gold and foreign currency has become a necessary means to balance the accounts.

Reserve Value Increases Instead of Decreases

A noteworthy market phenomenon is that despite Russia selling physical gold, its book wealth has been increasing.

Data shows that "despite the sales, driven by rising prices, the value of Russia's gold reserves soared by 23% in January, reaching $402.7 billion."

Since the outbreak of the Russia-Ukraine conflict in 2022, the continuous rise in gold prices has brought Russia a significant windfall. This increase in value is now comparable in scale to the value of Russia's foreign exchange assets frozen in Europe.

As market analysis points out, gold is effectively replacing the liquidity assets that Russia has lost, becoming an important support for its fiscal resilience

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