RUSSIA'S CENTRAL BANK AWASH IN GOLD AND FOREIGN CURRENCY. RUMORED "OLIGARCH" PROBLEMS A DEAD ISSUE.As the United States sits saddled with over $300 Billion in debt, Russia's Central Bank reported today in The Russia Journal that as of November 14, 2003, currency reserves amounted to US$65.4 Billion, an all time record.
Senior Deputy Chairman of the Central Bank, Oleg Vyugin, said the foreign reserves were expected to be US$65 Billion to US$66 Billion By The End Of 2003. The current situation in Russia, as in the rest of the world, is that demand for U.S. dollars is low and unlikely to rise any time soon, while the supply of dollars is high due to high oil prices.
On top of this record breaking good news, the Russian Finance Ministry reported that debt payments have been insignificant. November debt payments, for example, will amount to only US$217 Million.
The high gold and foreign currency reserves also seems to put to bed the rumors that there would be a massive outflow of funds from Russia due to the "Oligarch" problem surrounding the arrest of Mikhail Khodorkovsky, the head of the hugh oil concern YUKOS, on October 25 for tax evasion charges.
Some top analysts from around the world now estimate that Russia's reserves will soar even further than expected by the end of the year; totalling between US$67 Billion and US$68 Billion.
As shown by my Blog of September 10th., Russia is rushing forward as fast as possible to regain its former status as a World Super Power.
Mir (Russian for "Peace"),
Charlie