Govt changes Natl Wealth Fund structure, bans investment in USD

MOSCOW, Dec 30 (PRIME) -- The Russian government has changed the structure of the National Wealth Fund’s assets by making the share of foreign currency and gold flexible and completely banning the possibility of investment in U.S. dollars, the Finance Ministry said in a statement on Friday.

The minimum possible shares of any foreign currency and gold may reach as low as zero, while the maximum share of the Chinese yuan in the fund’s assets was raised to 60% from 30% and of gold to 40% from 20%. The balances of the fund’s accounts with the central bank nominated in British pounds and Japanese yen were zeroed, the ministry said.

The changes adapt the fund to the current macroeconomic and geopolitical challenges, the authority added.

As of December 1, the accounts of the National Wealth Fund with the central bank comprised 41.892 billion euros, 2.770 billion British pounds, 478.478 billion Japanese yen, 309.72 billion Chinese yuan, 242.7 billion rubles, and 554.911 tonnes of gold. The fund also placed 650.116 billion rubles on deposits with VEB.RF, and U.S. $3 billion were placed in the Eurobonds of Ukraine on which Kiev defaulted earlier.

(71.9778 rubles – U.S. $1)

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