How $300 bn of Russian cash pile can rattle global money markets

Russia's central bank and private sector have almost $1 trn of liquid wealth, with a much larger share of this held in US dollars than most people realise, says a Credit Suisse strategist


(Photo: Bloomberg)

Russia still has about $300 billion of foreign currency held offshore -- enough to disrupt money markets if it’s frozen by sanctions or moved suddenly to avoid them.

That’s according to Credit Suisse Group AG strategist Zoltan Pozsar, who parsed data from the Bank of Russia and financial markets to calculate the figure.

“When flows change, spreads can gap,” Pozsar wrote in a report Thursday. “If things escalate, it’s hard not to see a direct impact on FX swaps and U.S. dollar Libor fixings given Russia’s vast financial surpluses and where those surpluses are deployed.”

Also Read

What is at stake for India as Russia invades Ukraine?

Russia presses US, NATO allies for guarantees amid Ukraine tensions

India's forex reserves down by $1.34 billion to $641.113 billion

Forex reserves surge by $58.38 bn in Mar-Sep 2021 period: RBI report

India's forex reserves down by $4.531 billion to $629.755 billion

Dollar gives up some of its previous day's gains, Ukraine still in focus

Rouble climbs off record low, Russian stocks soar as central bank eyed

Gold prices climb as investors assess impact of Russian invasion on Ukraine

Rouble pulls up from record low with war in Ukraine, sanctions in focus

Airlines shift attention to Russia risks as Ukraine airspace is closed

First Published: Feb 25 2022 | 2:52 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to