Thread by @GastroOneIndia

#UkraineRussiaCrisis @ravikanths_

RUSSIANS MIGHT BE POOR COMPARED TO EUROPEANS, BUT RUSSIA IS RICH.
Russia’s GDP is smaller than India’s . It’s military budget too.

But it is a very rich country with cash, natural resources, mineral wealth and scientific and technologically advanced capabilities.

Russia’s central bank and private sector have almost $1 trillion of liquid wealth, with a much larger share of this held in U.S. dollars than most people realize, even after the country sold all its Treasuries holdings in 2018, Pozsar wrote.

He estimates about $200 billion is held in foreign-exchange swaps, with another $100 billion in deposits at foreign banks.

That’s a large enough amount to substantially shift funding markets, according to Pozsar.

The Bank of Russia’s U.S. dollar exposure is about 50%, compared with the 20% it reports, Credit Suisse estimates.

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