Russia’s gold reserves held in domestic banks have plummeted, falling by 46.4% over the course of 2024, according to data from the Central Bank of Russia.
This was reported by RBC on February 11.
As of January 1, 2025, Russian banks held just 38.1 tons of physical gold, marking the lowest level since July 2022. In monetary terms, the value of precious metals and stones in bank accounts dropped by 23.6% over the past year, reaching $3.38 billion.
Experts attribute this decline to Russia’s high key interest rate, which has made gold less attractive as an investment, and record-breaking gold prices, prompting financial institutions to sell off reserves to take advantage of the soaring market value.
The drop is the most significant since 2020, when the COVID-19 pandemic and economic crisis led to a 34.5-ton decrease in Russia’s gold reserves.
Russian banks had reached an all-time high in gold reserves on October 1, 2023, holding over 80 tons of physical gold worth 472.4 billion rubles. But the steep decline in the months that followed signals a shift in economic strategy as institutions seek liquidity and alternative investments.
This reduction in gold holdings comes amid broader financial struggles in Russia. Foreign investment has dropped to its lowest level in 15 years, while Western sanctions continue to limit the country’s access to global financial markets. With inflation pressures mounting and economic uncertainty persisting, Russian banks may continue to offload their gold reserves in the coming months.
