ALEXEI VEDEV: “THE MINISTRY OF FINANCE HAS DECIDED TO GET RID OF US DOLLARS IN THE NWF, I DO NOT SEE ANY ECONOMIC REASONS FOR IT”

Alexei Vedev, Head of the Financial Studies Department, Gaidar Institute commented to the IA Znac Information Agency on the government’s decision to reduce to nothing within a month the share of US Dollars in the National Welfare Fund (NWF).

On June 3, 2021, Anton Siluanov, RF Minister of Finance presented the new pattern of the NWF. According to his statement, the shares of US Dollars and GBP decreased from 35% to 0% and from 10% to 5%, respectively, while those of euro and yuan increased from 35% to 40% and from 15% to 30%, respectively; the share of yen stayed on at the level of 5%. Also, the NWF pattern will now include gold –20%.

“It is a political statement. I do not see any economic reasons for it. The US economy is recovering faster than the European one. Lots of analysts, including myself, believe that the appreciation of the US Dollar to euro is highly likely,” Alexei Vedev said.

Alexei Vedev believes that the existing pattern of the NWF and Russia’s foreign exchange reserves is balanced as a whole.