Transformation of the Russian Federation’s international settlement system: The role of gold and foreign exchange reserves

Aim. This study analyzes the transformation process of the Russian Federation’s (RF) international settlement system under the influence of sanctions restrictions, as well as identifies and theoretically substantiates the changing functional role of gold and foreign exchange reserves from an insurance instrument to a fundamental guarantor of sovereign payment infrastructure.

Objectives. To analyze changes in the global financial system; to quantitatively estimate the increase in the share of gold in the RF’s reserves; to examine the mechanism of using gold to smooth exchange rate fluctuations and cover liquidity shortages in non-dollar settlements; to identify the contradiction between the operational sale of gold and its strategic role in constructing gold-backed payment instruments.

Methods. Using general scientific methods of inquiry, the author examines the transformation processes of the RF’s international settlement system and the changes in the functional role of gold and foreign exchange reserves from various perspectives.

Results. The analysis empirically identifies an increase in the share of monetary gold in the RF’s reserves to 42 % by March 2026. Under conditions where dollar-denominated interventions are impossible, gold, together with the yuan, has become an operational tool for exchange rate stabilization. Simultaneously, gold is transitioning from a passive reserve to an asset class suitable for prospective gold-backed international payment instruments.

Conclusion. The transformation of the role of gold and foreign exchange reserves is dual in nature: on the one hand, gold serves as the only neutral guarantor of sovereignty not subject to freezing risk; on the other hand, its sale for current needs conflicts with its long-term strategic function. The optimal resolution of this dilemma lies not in the extensive accumulation of gold reserves but in the formation of multilateral agreements with gold backing.

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