Russia sold nearly 22 tons of gold to cover its budget deficit
Since the beginning of 2026, the Russian Central Bank has sold 21,772 tons of gold to finance the budget deficit, which reached 4.6 trillion rubles as of the end of March.
The decline in reserves comes amid low oil and gas revenues at the start of the year, Reuters reports.
The country’s gold reserves had fallen to 74.1 million troy ounces by April 1, down 0.2 million ounces in March. At the same time, the Moscow Exchange recorded a sharp increase in the volume of precious metal transactions, which rose more than 3.5 times in March compared to last year.
Gold sales may continue due to a sharp rise in government spending, which exceeds the Russian Federation’s budget targets. Analysts note that using reserves to plug budget gaps is consistent with the practice of central banks in developing countries. The total volume of domestic market transactions in rubles increased fivefold, reaching 534.4 billion rubles.
The Central Bank confirmed the data on reserve dynamics in its official report on Monday. The situation reflects increased pressure on the financial system amid a decline in key export revenues. Experts at Freedom Finance Global emphasize that the sale of gold is a necessary step to maintain the stability of payments.
Such transactions allow for partial compensation of the shortfall in foreign exchange earnings from energy sales. The precious metals market is showing unusual activity in both the swap segment and spot transactions. The future dynamics of gold and foreign exchange reserves will depend on the effectiveness of budget rule implementation and the pace of spending.
Currently, gold sales volumes remain significant compared to quarterly figures from previous years. The budget’s increasing reliance on the sale of liquid assets indicates structural difficulties in the economy. Forecasts for the second quarter suggest this trend may continue provided there is no rise in commodity prices.
Tax revenues from other sectors are not yet sufficient to fully cover current government needs. Changes in the structure of reserves may also be linked to a revision of the asset management strategy amid external isolation. Transparency of data on gold transactions remains a key indicator of the state of public finances.
Overall, the use of gold reserves serves as a key tool for crisis management in the current financial cycle. It is expected that government authorities will continue to adjust fiscal policy in line with export revenue levels. The stability of the ruble also remains influenced by the Central Bank’s operations in the precious metals market.
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