Russia sells U.S. government bonds

Russia sells U.S. government bonds

The move comes as Western pressure on Russia to strengthen problem around Ukraine and analysts say the country ‘s central bank is trying ruble appreciation .
According to figures released today by the U.S. Commerce Department , the U.S. government bond holdings fell Russian 5th consecutive month in March , down $ 100 billion , from U.S. $ 126 billion last month . However, the agency did not provide an explanation for the move .

“Part of this reserve could have been used to intervene in the exchange rate . Russians also possible simply to transfer ownership to another account in Belgium ” , Gennadiy Goldberg – strategist at TD Securities firms Securities commented on Bloomberg .

Russia sells U.S. government bonds

Russia has sold 20% of U.S. government bonds in March . Photo: Bloomberg

U.S. freezes assets of 45 individuals Russia , including oil firm Rosneft CEO – Igor Sechin and 19 companies and other organizations , such as SMP Bank and Bank Rossiya , in response to the merger Russian Crimea . President Barrack Obama administration and its European allies have threatened to punish a stronger economy , especially the banking sector of the country .

From the beginning , the Russian ruble has lost more than 5 % against the dollar . This has led ruble became the second currency in emerging countries group , after Argentina ‘s peso . Analysts said that the monetary authorities of Russia may have sold U.S. government bonds rubles to buy dollars .

Meanwhile , the amount of U.S. bonds that hold Belgium increased 12 % to U.S. $ 381 billion in March . They are the 3rd largest creditor of the U.S. , after China and Japan . ” Russia may have transferred assets to other depository account , but many features are Belgium ,” Sebastien Galy – currency strategist at Societe Generale senior said .

In the first quarter , the slowest growth in Russia a year when tensions with the U.S. and Europe that invest in this contraction . GDP increased by only 0.9 % over the same period last year , the federal statistics agency said yesterday Russia . This figure is higher than previous predictions of Russia ‘s Ministry of Economic Affairs of 0.8 % .

Russia sells U.S. government bonds
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