Russia Eliminates Dollars From Its National Wealth Fund

Russia's Finance Ministry reported on Tuesday that it had eliminated the dollars from its National Wealth Fund.

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The authorities reduced to zero the 35 percent of the fund it had in dollars and cut to 5 percent the portion in British pounds while increasing the shares of the Chinese yuan and the euro, which represent 39.7 percent and 30.4 percent respectively.

"These conversion operations were carried out with the funds of the NWF in foreign currency placed in accounts with the Bank of Russia as of July 1, 2021, as well as with federal budget funds in foreign currency in the equivalent of 31.6 billion rubles, credited to the Fund on July 2 this year to form it following the legislation of the Russian Federation," the Ministry said in a statement.

Moreover, the Ministry explained that portions of the fund in yuan and euros were reinforced on the basis that they are the "currencies of Russia’s leading foreign economic partners,” and according to the authorities using dollars in international transfers risks economic losses.