Russia Keeps Investment Trust in US Treasuries

U.S. Treasury HH Series Savings Bond file photo

(RIA Novosti – MOSCOW, October 12, 2013) ­ The Russian government will not revise its policy of investing almost half of the country’s foreign exchange reserves in US Treasury securities despite growing fears of a looming US debt default, Russian Finance Minister Anton Siluanov said.

“I don’t see the need for changing our reserve investment strategy at present,” Siluanov told reporters Friday after a meeting of the G20 finance ministers and Central Bank chiefs in Washington.

“These [US Treasuries] are reliable securities today, and we don’t plan significant changes in this policy,” he said, adding that the partial shutdown of the US government, which entered 11th day on Friday, is a short term event while Russia’s investments are long-term.

Siluanov expressed hope that the White House and the US Congress would find a solution to the current standoff over government debt-ceiling increase by the October 17 deadline.

“We invest a major part of our reserves, about 45 percent, in US securities, that is why we would certainly want the Congress and the US administration collaborate to resolve this crisis as soon as possible,” he said.

According to official statistics, foreign exchange reserves in Russia stood at some $522.6 billion as of September 2013. Foreign exchange reserves are foreign assets held or controlled by Russia’s Central Bank.