Let’s replace US dollar with Russian gold, Moscow exchange chief suggests

Russian gold might turn into the proper various to conservative investments within the buck, the CEO of Russia’s key buying and selling flooring, Moscow Exchange (MOEX), believes.

“Let’s offer an alternative to the US dollar in the form of Russian gold, which we produce… investment gold,” CEO Alexander Afanasiev prompt, talking within the Lower House of Russia’s parliament on Monday.

He added that some “super-conservative investors” buy {dollars} and hold them “under the pillow,” which isn’t very protected, he believes.

The MOEX chief additionally famous that Russians have elevated their funding exercise and act “surprisingly rational.”

Russia is the world’s third-largest gold producer and in 2017 boosted its gold output by greater than six p.c. It produced nearly 265 tons of gold in January-October 2018, in response to information supplied by the Finance Ministry.

However, some analysts doubted Afanasiev’s thought, warning that utilizing the dear metallic as a substitute of the US dollar is likely to be merely inconvenient.

“Gold does not have liquidity of the dollar. As practice shows, settlements in it are inconvenient for individuals,” metals and mining director Nikolai Sosnovsky from Prosperity Capital Management informed TASS on Tuesday.

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