We picked up some interesting quotes from the Russian Finance Minister Alexei Kudrin.
He told reporters that the national forex and gold reserve exploded by 44 percent over the last five months, reaching $516 billion.
More specifically on gold, the reserves grew from $35.778 billion to $40.95 billion in 2011, an increase of 14.45%!
Speaking at a press conference on Saturday after a meeting of the CIS finance ministers, Kudrin said, “This proves that the Russian rouble is strong.”
According to the minister, “Today the Russian rouble can be used in international settlements on the wish of economic entities.” “Today there are no restrictions for the rouble. The rouble is convertible currency,” he said.
The Russian government is clearly stacking up on gold to make its national currency much stronger against the current international fiat money standard, like the US dollar or the euro.
Seems like the Russian are working towards some sort of gold-backed rouble.
Furthermore, Kudrin told reporters that already this year, Russia will be placing the much talked about Eurobonds in roubles.
In his words, this became the largest emission of the local currency, which is not reserve. “This proves that an important step has been taken on the way to settlements in roubles,” Kudrin said.
“The rouble will become the more stable currency if Russia curbs inflation within 3-4 percent within 5-6 years,” Kudrin said. “This will be a new quality of the Russian currency,” he added.
“Then the Russian rouble will be trusted and settlements in roubles will be expanded,” he said. The minister recognised that till now the rouble has not corresponded to the standards to be met by reserve currencies.
Now we know why Russians are throwing parties again…