Russia’s National Wealth Fund Changes to the Chinese Yuan for 2023

Dec. 30, 2022 (EIRNS)—Russia will now keep their National Wealth Fund (NWF), worth hundreds of billions of dollars, in Chinese yuan, according to the Dec. 27 statement of Russia’s Finance Minister Anton Siluanov. Of note was his reasoning that “the yuan has the characteristics of a reserve currency and sufficient liquidity on our domestic foreign exchange market to the greatest extent.”

The fund is fed by revenue from oil exports, and it is used as the basis for their national pension system. However, the funds are also available to cover budget deficits, if needed. At the beginning of December, the fund’s assets totalled around $186.5 billion.

Siluanov’s more full statement on the change for the new year reads: “We will make an assessment of monthly indicators. Accordingly, we will make a decision on replenishing or not replenishing the NWF and in what currency: in rubles, in yuan, and so on. In order to hedge exchange rate risks, we always did it in foreign currency. Among the currencies of friendly countries, the yuan has the characteristics of a reserve currency and sufficient liquidity on our domestic foreign exchange market to the greatest extent. Therefore, the NWF will be replenished in this currency.”