Russian Central Bank Elaborates on Gold Exports Crisis

SEATTLE (Scrap Monster): The Russian Central Bank announced that it will work with banks in the country, which have been impacted by its decision to suspend gold purchases from domestic banks.

Elvira Nabiullina, Governor, Russian Central Bank acknowledged that the grounding of passenger flights has impacted gold exports from the country. In addition, the central bank’s decision to halt domestic gold purchases has curbed domestic demand for the yellow metal. In response to difficulties faced by the banks, the central bank has decided to explore various options including an opportunity to use vaults, Nabiullina added.

Meanwhile, banking sources said that Russian banks expect the central bank to hold a meeting next week to discuss the issue of gold exports.

The CPM Group noted that the Russian government has decided to cut gold purchases as it has no money to buy gold. It is no way related with foreign currency sales as central bank buys gold for roubles. There is sufficient gold inventory available, but there exists transportation issues to shift gold to destinations including New York and London.

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The National Finance Association had urged the country’s central bank to resume gold purchases to its reserves.

It must be noted that the Russian central bank had stopped gold purchases from domestic precious metals market with effect from 1st April, 2020.