Russia's Finance Ministry plans to decrease U.S. dollar holdings in National Wealth Fund

Vladimir Kolychev, Russia’s Deputy Finance Minister, told journalists that his ministry plans to make significant changes to the country’s sovereign investments in 2020. Those changes, Kolychev said, would include a decrease in the portion of Russia’s National Wealth Fund that is held in U.S. dollars.

“Various other currencies [to replace the dollar] are under consideration — naturally, all reserve currencies,” the deputy minister explained. He named the Chinese yuan as one possible alternative. Current regulations dictate that 45 percent of Russia’s sovereign wealth fund must be held in dollars, 45 percent must be held in euros, and 10 percent must be held in pounds sterling. In 2018, Russia’s Central Bank also shifted its investments from the dollar toward the euro and the yuan.