The Central Bank of Russia sold 300,000 ounces of gold reserves in January, worth $1.4 billion

Amidst the high volatility in gold prices, the Russian Central Bank has chosen to “lock in gains” by selling gold reserves to fill the fiscal gap.

According to data released by the Russian Central Bank this Friday, the country’s gold holdings decreased by 300,000 ounces in January, down to 74.5 million ounces. This is the first decline in the country’s gold reserves since October last year.

This timing for the sale is extremely precise. In January, global gold prices repeatedly hit record highs, with an average price of $4,700 per ounce.

Based on the market average price, the 300,000 ounces of gold sold by the Russian Central Bank could generate approximately $1.4 billion (about 10 billion RMB) in revenue for the national budget.

“Mirror Operation” Under Fiscal Pressure

This sale was not accidental but a deliberate strategy by Russia’s Ministry of Finance to address budget pressures.

As early as November last year, Xinhua reported that the Russian Central Bank confirmed to the Russian International News Agency that it had begun selling physical gold reserves to cover the country’s budget needs.

Bloomberg’s latest report states: “The Russian Central Bank started utilizing its gold reserves last year as part of a so-called ‘mirror operation’ related to the sale of assets from the National Wellbeing Fund by the Ministry of Finance.”

In the first two months of 2025, the Russian Ministry of Finance has spent 419 billion rubles (about $5.5 billion) from the National Wellbeing Fund. Faced with increasing budget deficits and declining oil and gas revenues, selling gold and foreign currency has become a necessary means to balance the books.

Reserves Increase in Value Despite Sales

A notable market phenomenon is that, despite selling physical gold, Russia’s book wealth has increased.

Data shows that “despite the sales, driven by rising prices, the value of Russia’s gold reserves surged by 23% in January, reaching $402.7 billion.”

Since the outbreak of the Russia-Ukraine conflict in 2022, the continuous rise in gold prices has brought Russia a significant windfall. This appreciation in value is already comparable in scale to the value of Russia’s foreign exchange assets frozen in Europe.

As market analysts have pointed out, gold is effectively replacing Russia’s lost liquid assets, becoming an important pillar of its fiscal resilience.

Risk Warning and Disclaimer

Market risks exist; investments should be made cautiously. This article does not constitute personal investment advice and does not consider individual users’ specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions herein are suitable for their particular circumstances. Investment is at your own risk.