Russia Spent a Lot of its Foreign Currency Reserves, Despite Sanctions…
In our previous post, we described our model, which estimates changes in Russia’s central banking foreign currency reserves by considering market- or price-driven revaluation gains and losses.
According to our model, Russia reduced its foreign reserves by US$15bn last week alone. This was the strongest decline since the beginning of March 2022, shortly after the start of the war. It would also indicate, that despite sanctions Russia can still make use of its foreign currency reserves. Another question is, what they spent it on…