Sanctions, Russian Gold Reserves and More- Goldman
Q: What restrictions on reserves were announced and what is the impact?
Q: What do we know about the size and composition of Russias FX reserves?
Q: Where are their reserves held and in what securities?
Q: What is the precedent and process for countries imposing restrictions on reserves?
Q: Isnt there a concern this will undermine the reserve currency status of the Dollar (and Euro)?
In effect, the sanctions will likely apply to about 65% of CBR reserves, and the other 35% (held in gold and CNY) are ineffective at directly defending the currency in the Dollar market. To the extent that Dollar export revenues become unusable/illiquid, Russia could see less of an incentive to sell energy to the West (the main source of its reserve accumulation).
Q: What restrictions on reserves were announced and what is the impact?
In a coordinated release on Saturday night, leaders of the European Commission, France, Germany, Italy, the United Kingdom, Canada, and the United States