Russia bribes the US Treasury

20 July 2017, 14:45 | Economy
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Despite the not very warm relations between Russia and the US, the Bank of Russia continues to diligently invest the country's gold and currency reserves in US government bonds. According to the US Treasury, at the end of May, the Russian Central Bank, whose functions include the management of state gold and foreign exchange reserves, invested 108.7 billion rubles in American debt securities. The total amount of investments was a record since the fall of 2014. Thus, Russia was the second after China in terms of the volume of purchases of US government bonds on the market among sovereign players.

However, analysts do not see anything reprehensible in the actions of the Central Bank. "Most likely this is some kind of a deal, or an attempt to make a deal," said Vice-President of the Golden Mint House Alexei Vyazovsky. "We are supposed to buy your debt securities, finance your budget deficit, part of which will be spent on military presence around the world - you are going to meet us in the issue if not lifting the sanctions, then at least mitigating them".



Also, the expert draws attention to the fact that debt securities of the US government have AAA rating, which implies that this is the most reliable financial instruments in the world according to the criteria of the Central Bank of the Russian Federation. "If suddenly Russia decides to withdraw 108.7 billion dollars invested in US Treasury bonds, then there are not enough liquid and reliable markets in the world where it is possible to park such amounts," Vyazovsky said..

Over the month, according to the US Treasury, Russian investments in Treasuries increased by $ 3.8 billion, in two months - by $ 8.9 billion, and compared to October last year - by $ 34.1 billion.




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