Preventing Russia from supporting its Ruble Of all currencies, none is backed by gold to the extent the Russia's Ruble is. Approximately 23% of Russia's $640 billion in foreign asset reserves are in gold. The purpose served by Russia’s substantial reserves hoard is to maintain the Ruble’s stability during a crisis in confidence, which would be accomplished by its Central Bank buying up the Ruble in foreign exchange markets.
Yesterday the European Commission determined to work to cripple any efforts by Russia’s Central Bank to use its reserve assets overseas to support the Ruble. Will be interesting to watch what happens with the Ruble this coming week.