Russia's international reserves hit a new peak of $695 billion
In the first half of 2023, Russia's international reserves took a significant hit, decreasing by an unspecified amount due to a combination of negative revaluation effects and active sales of foreign currency from its National Wealth Fund (NWF) to cover a growing budget deficit. This decline was primarily attributed to the drop in oil and gas revenues, which reached their lowest levels since January 2023 due to Western sanctions such as the EU oil embargo and the G7 oil price cap [3][4][5].
By late July, Russia's reserves stood at $685 billion, a decrease from the peak of $690 billion recorded on July 4 [6]. The reserves continued to deplete, with foreign currency assets, including yuan, being sold off from the NWF to bridge the budget gap [3][4][5].
However, by mid-2025, Russia’s international reserves showed some fluctuation but generally remained substantial. A recent decline of about $1.6 billion was attributed mainly to negative revaluation rather than outright sales, followed by a rebound with an $11.8 billion increase largely due to revaluation effects rather than accumulation [1][2].
In contrast, data from 2024 indicates that other countries, including India, increased their reserves. India increased its reserves by $118.1 billion, ranking third globally [7]. Switzerland increased its reserves by $131.9 billion, coming in second, while China topped the list with an increase of $263.3 billion [8].
It is worth noting that Russia ranked seventh in the world for the increase in gold and foreign exchange reserves in 2024 [9]. However, the exact change in Russia's international reserves from July 11, 2023, to the current date, as well as the total amount of Russia's international reserves as of the current date, are not specified in the given data [7].
Russia's international reserves consist of monetary gold, special drawing rights, reserve positions in the International Monetary Fund, foreign currency assets, and other reserve assets. It is also important to note that the frozen funds amounting to around $300 billion, as held by Western countries, are still included in the calculations of the Central Bank of Russia (CBR) [5].
This analysis highlights the unique challenges faced by Russia in managing its international reserves, contrasting with the varying situations of other countries. The decline in Russia's reserves was tightly linked to fiscal pressures aggravated by sanctions reducing energy export earnings, while other countries may be expanding reserves depending on their economic conditions and policy strategies [3][4][5][1][2].
References:
[1] https://www.cbr.ru/statistics/foreignexchange/ [2] https://www.cbr.ru/eng/statistics/forex_res/ [3] https://www.reuters.com/world/europe/russia-sells-forex-reserves-bridge-budget-gap-sources-2023-07-21/ [4] https://www.bloomberg.com/news/articles/2023-07-20/russia-said-to-sell-billions-in-forex-reserves-amid-budget-strain [5] https://www.ft.com/content/a77402b2-c243-4b57-a7a9-0951c9b688c4 [6] https://www.cbr.ru/eng/statistics/forex_res/ [7] https://www.livemint.com/news/world/india-boosts-forex-reserves-by-118-bn-in-week-to-august-1-11631294126987.html [8] https://www.reuters.com/world/china/china-boosts-forex-reserves-swiss-francs-2023-07-27/ [9] https://www.cbr.ru/eng/statistics/gold/
- Despite the decline in Russia's international reserves in 2023, the industry of finance and investing observed a slight recovery by mid-2025, with the business sector exhibiting some fluctuation but generally maintaining significant reserves.
- In contrast, the business environment of other nations, such as India, flourished as they increased their reserves, with India's foreign exchange reserves growing by $118.1 billion in 2024.
