Who is guaranteeing Russia's foreign currency reserves?

5 pointsmaurimo3 comments

It looks like that while Russia invades Ukraine it's still taking advantage of a good amount of services from the West. Since Russia's foreign reserves are most probably not physical banknotes, they are probably entries in the balance book of private banks and central banks. How does electronic money work in detail, and why can't those credits be simply seized by the authorities?

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Before the Georgia invasion, Russia moved all its gold out of the U.S. Several years later, it completed selling is U.S. sovereign debt and buying China debt to replace it. Not what you are asking but it shows that Russia was looking forward toward a future like this one and taking actions to limit its vulnerability. I don't think they would overlook this sort of vulnerability.

Thanks a lot for the answer! I feel this is a vulnerability on Western side: essentially we are unable to prevent Russia from benefiting of/using our financial/judicial structure while Russia is directly waging war to a democratic country.

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