FX.co ★ Russia’s Finance Ministry cut share of US dollar and euro in NWF

Russia’s Ministry of Finance has been actively promoting the idea of the de-dollarization. At the same time, it also intends to reduce the influence and use of the euro. The Finance Ministry has already cut the share of the US dollar and the euro in the National Wealth Fund. According to MinFin’s report on conversion operations performed in February, the share of both foreign currencies in NWF declined by 10% to 35% from 45%. Moreover, the share of the yen and the yuan is 15% and 5% respectively.

The country's Finance Ministry announced that the Chinese yuan and the Japanese yen had been included in the regulatory currency structure of Russia's National Wealth Fund (NWF). The yuan accounts for 15% and the yen – for 5% of the foreign currencies portfolio of the NWF. At the same time, the share of the British pound remained unchanged at 10%. Such vague announcements cause a lot of questions. People wonder why there is no accurate information on every currency and why the share of the greenback and the euro is presented as one figure. It is rather difficult to understand what is the real share of the US dollar and the euro as together they make 10%.

In February 2021, Russia’s Finance Ministry completed the necessary conversion operations in order to replace the existing currency structure of the NWF funds by a new one.