Russia Buying Canadian Dollars

Alexei Ulyukayev, first deputy chairman of Russia’s central bank, said in an interview today that Russia is adding Canadian-denominated assets to its foreign reserves. Ulyukayev noted that Russia is attempting to diversify its holdings of nearly $500 billion, the world’s third largest cache of foreign reserves.

“We have recently begun investing in assets denominated in the Canadian dollar,” Ulyukayev, said in an interview yesterday in Moscow. “So far, the amounts are very small, but there’s perhaps potential for increasing our holdings.”

Ulyukayev’s comments helped make Canada’s dollar the best performer among the 16 most-traded U.S. dollar counterparts yesterday. The currency appreciated as much as 1.5 percent, the biggest intraday move since Sept. 1, to C$1.0092 per U.S. dollar. It traded at C$1.0099 at 5 p.m. in Toronto yesterday, compared with C$1.0247 on Nov. 23. One Canadian dollar buys 99.02 U.S. cents.

Source: Bloomberg

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