Russia's wealth fund could be invested in gold, no plans for new currencies following yuan, yen - Siluanov
MOSCOW. March 17 (Interfax) - National Wealth Fund money could be invested in gold, but there are no immediate plans to diversify the fund's currency composition further following the recent addition of the yuan and yen, Russian Finance Minister Anton Siluanov told reporters.
"We are guided by the basket in which the Central Bank places its gold reserves. The Central Bank places them in gold, so we in our own basket for the placement of NWF money are not ruling out the possibility of using the same asset," he said, when asked whether the Finance Ministry was thinking about investing any NWF money in precious metals this year.
The Budget Code was amended at the end of 2020 to allow NWF money deposited with the Central Bank of left on accounts with the Central Bank to be invested in precious metals. The purpose of the amendment is to diversify investments using funds from the NWF in order to ensure their integrity, as well as to increase return on the placement of the funds from the NWF.
Siluanov said at the end of 2019, following the drafting of proposals to amend the currency structure of the NWF, that although the ministry had not yet proposed the move, including assets such as precious metals could be advisable.
Siluanov also said at the time that the task of the Finance Ministry when investing funds from the NWF is to have quick, highly liquid assets, and reliable ones.
"Gold is less highly liquid than a financial asset, but if some part could be in gold assets, it seems to me that this is quite acceptable," Siluanov said.
Russia started investing NWF assets in Asian currencies in February 2021, reducing the share of both the dollar and euro. The currency composition of the National Wealth Fund for assets denominated in foreign currencies is now 5% yen, 15% yuan, 35% dollars, 35% euros and 10% pounds sterling. It used to be 45% dollars and euros and 10% sterling.
Asked about the likelihood the list of currencies in which NWF money can be invested might be invested expanding, Siluanov said: "By and large I think the yuan and yen will be sufficient in the short term."
"The dollar is a politicized currency or Russia, so we are trying to mitigate the risks of investing in assets in that currency," he said.