This is fiscal injection using the books of the Central Bank of Russia rather than the government budget. The central bank is acquiring assets for its own liabilities denominated in the currency it issues, while if fiscal spending were used to inject currency into the economy, the fiscal balance would be show increasing government liabilities.A declining fiscal balance would be interpreted as a negative signal, whereas the central bank acquiring gold reserves ("hard assets") is considered positive. This not only increases the domestic money stock, providing purchasing power in an economy that is suffers from lagging demand, resulting in idling of available resources, but it also makes the ruble look stronger.Someone knows what they are doing?Russia InsiderRussia’s Central Bank Is Buying
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Mike Norman considers the following as important: Central Bank of Russia, gold reserves
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This is fiscal injection using the books of the Central Bank of Russia rather than the government budget. The central bank is acquiring assets for its own liabilities denominated in the currency it issues, while if fiscal spending were used to inject currency into the economy, the fiscal balance would be show increasing government liabilities.
A declining fiscal balance would be interpreted as a negative signal, whereas the central bank acquiring gold reserves ("hard assets") is considered positive. This not only increases the domestic money stock, providing purchasing power in an economy that is suffers from lagging demand, resulting in idling of available resources, but it also makes the ruble look stronger.
Someone knows what they are doing?
Russia Insider
Russia’s Central Bank Is Buying up so Much Gold Its Huge Mines Can No Longer Keep Up