Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
the annual report of the Central Bank
Economy

Annual report of the Central Bank: state of reserves and forecast for the future

16.07.2020
2 min read

Annual report of the Central Bank: redistribution of the share of assets in foreign currency

Recently the annual report of the Central Bank was presented, which reflects the economic situation in the country and its forecast. Despite the prolongation of the U.S. sanctions, Russian international reserves show good stability, although they do not meet foreign economic indicators.
According to the report, the Central Bank intends to increase gold reserves. Their share in the total reserves is 18.5% and is estimated at $86.9 billion. This situation on the one hand creates the impression of reliability before financial crises or new sanctions, but in reality it is not that simple. If necessary, it is quite difficult to convert gold bars into real money, so this amount is insignificant for external calculations.
The assets stored in foreign currency and precious metal account for 22.7%, which is almost 2 times less than last year. If before, pounds accounted for 8.3%, now – 6%. The share of yuan has increased. Last period, it was 2.8%, while at present it is 14.2%.
The situation with foreign securities occupies an important place in the Central Bank’s report. These include primarily the debt obligations of China, the UK, the USA, Germany and Canada.
Even 5 years ago, it was difficult to believe that foreign securities denominated in dollars will occupy a share almost 3 times smaller than the debt obligations in yuan. But now it is quite real.
Acquisition of securities from the U.S. Treasury by central banks has practical motives, not political ones. This investment option is more reliable and convenient to make calculations. As SWIFT testifies, in July last year the dollar occupied 42,63 % from the total sum of calculations, euro – 36,74 %, and yuan – 1,24 %. The Chinese currency was ahead of the Canadian and Australian dollars.

the annual report of the Central Bank

But the increase in the volume of the American currency, despite the convenience and its distribution in the world, has become unprofitable for the Central Bank. The sanctions forced the Bank to revise its portfolio, and now the strategy of the main financial institution has changed. Therefore, the debt obligations in the Chinese currency amount to 4.6 trillion rubles, which is 3 times more than the dollar, estimated at 1.55 trillion rubles. But the yuan is not given first place in the CB portfolio – assets in euros have increased from 4.03 trillion to 6.7 trillion rubles.
The decline in dollar reserves may have a negative impact on the overall state of the country’s economy. Despite the fact that imports from China amounted to 22%, calculations are often made in dollars.
This state of affairs complicates international settlements and may lead to serious inconveniences in future trade operations in the markets.

Tags: Economic
0
Previous Post Kusto Group: prospects of Kazakhstan as an agrarian country Next Post Free margin and leverage: basic concepts on the Forex exchange

You Might Also Like

carbon emissions
Economy
To reduce carbon emissions, EU cuts oil and gas consumption
09.10.2021
Chinese economic development
Economy
Chinese economic development: forecast for 10 years
17.05.2021
oil exports to China
Economy
Oil exports to China increasing: reasons for the growth in volumes
21.02.2021
China's weaknesses
Economy
RAND Research Corporation reveals China’s weaknesses
03.03.2022
U.S. Mint
Economy
The U.S. Mint encourages people to pay more in cash
17.04.2021
2% tax increase
Economy
How will the Japanese economy and population be affected by the 2% tax increase?
08.12.2020

Recent Posts

  • 1The concept of financial management-1
    The concept of financial management in terms of the investment horizon
    18.05.2022
  • 2The state of the U.S. economy
    Moody’s Analytics experts have assessed the state of the U.S. economy
    17.05.2022
  • 3Ford invests
    American concern Ford invests in plant construction
    16.05.2022
  • 4Dunamu
    Cryptocurrency exchange operator Dunamu attracted $85 million in investments
    15.05.2022
  • 5artificial intelligence technology in banking
    Artificial intelligence: applications for banking
    14.05.2022

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • ExxonMobil: history of origin

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

The concept of financial management-1
The concept of financial management in terms of the investment horizon
18.05.2022
The state of the U.S. economy
Moody’s Analytics experts have assessed the state of the U.S. economy
17.05.2022
Ford invests
American concern Ford invests in plant construction
16.05.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Skolkovo analysts: the Russian energy market is suffering losses
  • ExxonMobil: history of origin
  • How Portugal’s economy recovered from the crisis: the country’s experience
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics