Russia has significantly increased its foreign exchange reserves during the crisis caused by the coronavirus pandemic. They make the country invulnerable to Western sanctions, writes the German newspaper Die Welt.
The Russian budget is filled with money, and the volume of foreign exchange reserves has set a new record, reaching 600 billion dollars, the newspaper notes. Chris Weafer, an expert at Macro-Advisory, pointed out that Russia has the fifth largest reserves in the world and a small national debt. The authorities are in a comfortable state and are not very vulnerable in geopolitical terms, Vifer is sure.
According to analysts, the economy has become more stable than it was during the past financial crises. The probability of default in Russia is estimated at 6 percent (compared to 30 percent in previous crises). “When the amount of reserves in early 2015 reached $ 350 billion, the country was predicted to go bankrupt,” says Wiefer.
Abandoning the dollar and building up gold reserves also strengthened the economy, prices for precious metals jumped, and the budget received an additional $ 47 billion. However, there was no increase in the welfare of the population, the West can only rely on the discontent of Russians, experts believe.
Earlier, in August, it was reported that the threat of new sanctions from the United States and Europe will encourage Russia to extract more gold. The country could become the world’s largest producer by 2029, overtaking China and Australia, Fitch Solutions predicted.