Russia sells foreign reserves
A new This Month in the Economy Exercises on the economics and geopolitics of Russia selling Yuan and gold reserves.
In January, Russia started selling some of its yuan as well as gold reserves. These decisions were a consequence of sanctions imposed by G7-countries on Russian oil and gas, which pushed Russia’s government budget into a significant deficit, due to a drop in tax revenues from oil and gas. These recent financial decisions of the Russian government provide a clear example of values and goals other than efficiency can affect economic activities, in this case how geopolitical goals (Putin’s imperial ambitions) are affecting the accumulation and stocks of Russia’s foreign exchange reserves.
The teaching package is aimed at academics teaching undergraduate students in economics or similar fields.
Download the slides here: https://www.economystudies.com/russia-sells-foreign-reserves/