Since December 2017 Russia has cut its holdings of U.S. foreign debt by more than half. Instead, it’s been increasing the share of gold in its international reserves. That’s understandable behavior for a country that has to deal with an unpredictable U.S. sanctions policy, but it’s also part of a trend. Foreign governments and international organizations account for a decreasing share of outstanding U.S. debt, and some economies have in recent years aggressively upped the share of gold in their reserves instead.
Gold bars are presented at the German Central Bank in Frankfurt am Main, central Germany on Aug. 23, 2017. Photo credit should read ARNE DEDERT/AFP/Getty Images
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