The piggy bank protects the ruble: why is the Central Bank reducing gold reserves
Russian gold reserves are rapidly declining — in the first two months of 2026, the volume of precious metal reserves of the Bank of Russia decreased to 74.3 million troy ounces. This is the lowest value since March 2022. Experts attribute the observed decline to the regulator's desire to lock in profits against the background of high gold prices. However, it is important to keep in mind that this is not a "sell-off", but targeted actions within the framework of portfolio management. Izvestia learned how the reduction of gold reserves affects the stability of the Russian financial system.
The clink of coins
The gold reserves of the Bank of Russia decreased to 74.3 million troy ounces in February. This figure is the lowest since March 2022.
Reserves have been decreasing for the second month in a row — in January, the volume of gold at the Central Bank decreased by 300 thousand troy ounces, in February — by another 200 thousand.
As a rule, the decrease in the volume of gold reserves of the Central Bank is due to the minting of precious coins. The Central Bank announced its intention to increase the issue of investment coins in 2026 back in April last year. The most popular Russian gold coin "George the Victorious" with a face value of 50 rubles contains 7.78 grams of pure gold. The last time the Bank of Russia issued this investment coin was in January 2026, Ksenia Bondarenko, Associate Professor of the Department of World Economy at the Faculty of World Economics and Politics at the National Research University Higher School of Economics, recalls. The total annual circulation should be up to 1 million units. Taking into account the weight of 7.78 g, the maximum amount of gold that the Central Bank could spend on the production of such a batch is 7.78 tons.
— It is not known when the Bank of Russia directs gold directly to the minting of coins, but it is possible that part of the current decrease in reserves may actually be related to this, — the expert admits.
In 2026, the Central Bank plans to issue three more types of St. George the Victorious gold coins (weighing 15.55 g in a circulation of up to 100,000 pieces, 31.1 g in a circulation of up to 100,000 pieces and 1 kg in a circulation of 100 pieces), as well as coins for the 250th anniversary of the State Academic Bolshoi Theater of Russia (500 pieces of 15.55 d) and the Nuclear icebreaker Arktika (500 pieces of 31.1 g each), clarifies the interlocutor of Izvestia. The total amount of gold that will be required for minting for the entire year, according to her calculations, is about 12.7–13.8 tons.
Theoretically, 500 thousand troy ounces of gold, which is equivalent to 15 tons, could be used to issue investment coins. However, there have never been such large monthly reductions since 2015 (there are no earlier similar data).
In practice, the "absorption" of 15 tons of gold in two months by minting investment coins is unlikely, according to investment adviser to the registry of the Central Bank, founder of the online investment university "Finansologiya" Yulia Kuznetsova.
— Minting does require physical gold, but such volumes are too significant to be explained solely by the issue of coins. Most likely, this is only part of the general movement," the Izvestia interlocutor suggests.
It is impossible to spend 15 tons of gold on minting in two months with the existing capacities, confirms Olga Borisova, Associate Professor of the Department of Corporate Finance and Corporate Governance at the Financial University under the Government of the Russian Federation.
— Such coins are usually minted on a planned basis as part of the release of commemorative and investment series. They usually take up fractions of a percent of the gold reserve," she explains.
The current scale of inventory reduction is not a sign of the Central Bank's lack of liquidity, Kuznetsova emphasizes. The recorded decrease is less than 1% of the total reserves.
— For the Central Bank, this is a working value. If we were talking about liquidity problems, we would have seen a sharper and longer reduction, as well as parallel signals on the foreign exchange market," the expert is convinced.
Olga Borisova agrees with this position. She recalls that, despite the increase in currency swap rates and the forecast for the structural deficit, since February 2026, there has been a dynamic increase in exporters' revenue due to the growth of oil futures by 18.03% in two months.
A profitable business
A much more likely reason for the reduction in reserves is the sale of metal as part of the "mirroring" of the Ministry of Finance's transactions with gold from the National Welfare Fund (NWF). For the first time, the Central Bank began real sales of physical gold from state reserves in November 2025. The purpose of the operations is to stabilize the ruble exchange rate, reduce the impact of oil prices and budget flows on the foreign exchange market. The Bank of Russia does not disclose the details of the transactions (volumes, prices, market segment, uniformity).
"Since the liquidity of the domestic gold market has increased in recent years, in connection with the implementation of the budget rule and other operations of the NWF, the Bank of Russia performs these equivalent operations in the domestic market not only by buying and selling yuan for rubles, but also partially by buying and selling gold. This also allows us to maintain the necessary level of currency diversification of international reserves, in which the share of gold has increased significantly in recent years due to rising prices," the regulator explained earlier.
According to Yulia Kuznetsova, one of the logical factors of the observed reduction in gold reserves is the Bank of Russia's desire to lock in profits at high prices (at the end of February, the book value of the precious metal, set by the Central Bank, was 12,837 rubles).
— Gold is at historically high levels, and it is natural for the regulator to partially use this asset to balance reserves. But it is important: this is not a "sale", but targeted actions within the framework of portfolio management, the investment adviser emphasizes.
The price of gold increased by 63.93% over the year, and in March it broke through a historical maximum of $ 5.6 thousand per ounce, showing an unprecedented increase of 212%, Olga Borisova recalls. In such circumstances, the sale of reserves is a standard management practice.
"This allowed us to record excess profits, and spend the funds received on controlling volatility, running costs and maintaining liquid foreign exchange reserves," says the Izvestia interlocutor.
An impressive pot
It is noteworthy that the reduction in physical volumes does not negatively affect the value of Russia's gold and foreign exchange reserves due to the high price of gold. In particular, in February 2026, monetary reserves of gold in the Russian Federation exceeded the $400 billion mark for the first time in modern history. The share of precious metals in the total volume of the Central Bank's international reserves reached 48.3%, which was the highest since January 1995. By March, the value of gold reserves had decreased slightly, amounting to more than $384 billion.
The reduction in gold reserves primarily indicates the flexibility of the Central Bank's approach, believes Yulia Kuznetsova. She considers the volume of 74.3 million troy ounces comfortable enough not only to accumulate gold, but also to manage it. Reducing reserves to the lowest level in the last four years is not critical, as the overall indicator remains high. Despite the decrease in volumes, Russia's position in the world ranking of gold reserves remained unchanged — Russia still ranks fifth, behind only the United States, Germany, Italy and France.
— We do not see any sharp decline or going beyond historical ranges. This is rather a fluctuation within a stable system," the investment adviser draws attention.
We should also not forget that the absolute volume of Russia's gold and foreign exchange reserves is a record, Olga Borisova emphasizes. According to the Central Bank, as of March 1, 2026, it amounted to $809.3 billion.
— In this regard, the reduction of the gold reserve to a four-year low is not critical for the overall stability of the financial system of the Russian Federation. Due to rising gold prices, all frozen assets have been compensated, which allows Russia to develop, the Izvestia interlocutor is convinced.
In general, according to a number of assessment approaches, the volume of gold reserves of $25 billion is sufficient to ensure stability in the country, she says. The value of the existing stock of 74.3 million ounces exceeds this level by almost 16 times.
At the same time, Ksenia Bondarenko does not rule out that by the end of the year, the Bank of Russia will again switch to a strategy of increasing gold reserves.
A complex mechanism
The reduction of gold reserves will not have a significant impact on the stability of the ruble, Yulia Kuznetsova believes. Market players observe the sale of stocks at maximum prices, perceiving this as "profit-taking," says Olga Borisova.
— Some concerns in the market may arise due to the fact that investors understand the importance of the proceeds to eliminate the liquidity deficit. However, high reserves of gold, inaccessible to sanctions and blocking, make it possible to look optimistically at the current situation, understanding the necessity of selling reserves and the rationality of the decision made in the face of severe budget constraints, she is sure.
Other factors will have a much greater impact on the Russian currency, among which Kuznetsova highlights oil prices, the trade balance and the key interest rate.
— By itself, a decrease in stocks by such amounts is unlikely to be perceived as a signal of weakness. But in combination with other negative factors, it can theoretically increase the caution of market participants," the expert warns.
But it is important to understand that the current dynamics of the reduction of gold reserves is, in fact, a reflection of a more flexible and pragmatic policy of the Bank of Russia, the investment adviser is convinced.
"The regulator is not just accumulating gold, but is beginning to actively manage it as a full—fledged financial instrument," she explains.
The Central Bank's gold is not just "reserves", but a full—fledged monetary instrument for managing liquidity, Ksenia Bondarenko recalls.
— In fact, its reduction does not carry any significant risks — the volume of reduction is not as significant as it looks at first glance. And part of the reserves could really have been spent on minting coins," the expert notes.
Reducing volume at current levels does not carry systemic risks and does not change the stability of the financial system. We are talking about tactical actions within the overall strategy, where gold remains important, but not the only supporting asset, Kuznetsova points out.
"In fact, this is not a signal of weakening, but of a transition to a more complex model of reserve management — with an emphasis on balance, liquidity and adaptation to new external conditions," the Izvestia interlocutor summarizes.
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