Russia will now keep their National Wealth Fund (NWF), worth hundreds of billions of dollars, in Chinese yuan, according to the Dec. 27 statement of Russia’s Finance Minister Anton Siluanov. Of note was his reasoning that “the yuan has the characteristics of a reserve currency and sufficient liquidity on our domestic foreign exchange market to the greatest extent.”
The fund is fed by revenue from oil exports, and it is used as the basis for their national pension system. However, the funds are also available to cover budget deficits, if needed. At the beginning of December, the fund’s assets totalled around $186.5 billion.