MOSCOW-Russia planned to cut the share of US dollar in its National Wealth Fund as it is currently eyeing on investing in other foreign currencies including Chinese Yuan, Russian Deputy Finance Minister Vladimir Kolychev said on Wednesday.
The changes to the structure of the National Wealth Fund, which is part of Russia’s sovereign reserves, will come into effect next year, Kolychev stated.
“I can say with certainty that the U.S. dollar share will be smaller. Different currencies are being considered… including the yuan.” He added.
The said scheme is Russia’s first step to de-dollarisation as the country aims to minimize its dependence on the US Dollar. This followed after Western countries initiated a sanction implementation on Moscow over its Annexation of Crimea from Ukraine back in 2014.
Kolychev stated that the plan was partly to protect Russian reserves from external threats and risks. However, he did not disclose how much US Dollar share would be reduced from its National Wealth Fund.
“Geopolitical risks are one of the key factors in determining the structure of the National Wealth Fund,” he said.
Kolychev also stated that the finance ministry endeavors to make the National Wealth Fund’s structure similar to central bank’s foreign currency reserves where euros have larger share than the greenback.