This could serve two purposes: 1) provide a path to liquidity for SWIFT-constrained banks, and 2) centralize more of the nation's gold as Putin accelerates his de-dollarization plans.

Full Bank of Russia statement:

In order to balance supply and demand in the domestic precious metals market, the Bank of Russia will buy gold from credit institutions at a fixed price from March 28, 2022.

The price from March 28 to June 30, 2022 inclusive will be 5,000 rubles per 1 gram.

The established price level makes it possible to ensure a stable supply of gold and the smooth functioning of the gold mining industry in the current year.

After the specified period, the purchase price of gold can be adjusted taking into account the emerging balance of supply and demand in the domestic market.

The buying price, as the chart below shows, is significantly below the current market price...