Russia wants to reduce the US dollar share in its National Wealth Fund, as it looks to invest in the Chinese yuan and other foreign currencies, Deputy Finance Minister Vladimir Kolychev has announced.
“I can say with certainty that the share of the US dollar will be smaller,” the official told reporters on Wednesday. “Different currencies are being considered, all the reserve ones… including the yuan.”
While the deputy minister did not elaborate on the exact amount of the dollar cut, he said that the National Wealth Fund’s currency structure will be similar to that of the Russian central bank’s reserves. In one year, the country’s regulator halved the US currency share from its international holdings, with the dollar share falling to 23.6 percent as of the end of March.
“Geopolitical risks are one of the key factors in determining the structure of the National Wealth Fund,” Kolychev said, adding that the changes will be implemented next year.
The volume of the National Wealth Fund reached nearly 8 trillion rubles ($124.46 billion) on November 1, the biggest figure since its establishment in 2008. The fund is a part of federal budget assets and supports the national pension system.
In response to US sanctions, Russia has been eliminating the greenback from its reserves and increasing gold and other currency holdings in an effort to de-dollarize the economy.