Russia’s central bank announced today that it is suspending gold purchases from banks so that they can meet the population’s demand for the metal.
“In order to create the conditions to respond to the demand of the population, the Bank of Russia suspends the purchase of gold by credit institutions from March 15, 2022,” the Bank of Russia said in a statement.
“Currently, the demand of the population for the purchase of gold bars has increased, mainly due to the abolition of VAT on these transactions,” the central bank said.
The Bank of Russia resumed purchases of gold in the domestic precious metals market on February 28, 2022, almost two years after the suspension of these operations, following the invasion of Russia by Russian forces.
The abolition of VAT on gold purchases by individuals was then decided, after the fall of the ruble exchange rate due to sanctions imposed by Westerners.
This measure is aimed at preventing foreign currency purchases by the population, which further weaken the national currency.
The ruble has lost 40% of its value since the beginning of the military invasion.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
