In order to balance supply and demand in the domestic precious metals market, the Bank of Russia will buy gold from credit institutions at a fixed price from March 28, 2022.
After the specified period, the purchase price of gold can be adjusted taking into account the emerging balance of supply and demand in the domestic market.
Even if the smallest country with the weakest currency were to use it, the stage is now set for broader adoption and decentralized payments taking over what was once a system exclusively denominated by dollar transactions. There is a choice now and it is going to further destabilize global trade.
Fast forward to today and people are now asking what to make of the revelation that Russia is beginning to implement something it and China have been working on for years. What does it mean? Today’s GoldFix Podcast focuses almost exclusively on the implications of these announcements in context of the above, and going forward. Here are the most relevant 2 minute clips broken out:
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And on Friday, a day after Biden and his pals in Brussels discussed ways to stop Russia utilizing its gold reserves to maintain some stability in an increasingly chaotic economy, the Bank of Russia announced plans to begin buying gold from its banks at a fixed price. This could serve two purposes: 1) provide a path to liquidity for SWIFT-constrained banks, and 2) centralize more of the nation's gold as Putin accelerates his de-dollarization plans.
“When we exchange with Western countries…they should pay in hard money,” Zavalny said.
“And hard money is gold, or they must pay in currencies which are convenient for us, and that is the national currency – ruble. That relates to our ‘unfriendly’ countries.”