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Pozsar Says $300 Billion Russia Cash Pile Can Roil Money Markets

  • Russia’s official reserves overstate efforts to shun dollar
  • Hoard is large enough to substantially shift funding spreads
Exchange rates in the window of a currency exchange bureau in Moscow on Feb. 24.

Exchange rates in the window of a currency exchange bureau in Moscow on Feb. 24.

Photographer: Andrey Rudakov/Bloomberg
Updated on

Russia still has about $300 billion of foreign currency held offshore -- enough to disrupt money markets if it’s frozen by sanctions or moved suddenly to avoid them.

That’s according to Credit Suisse Group AG strategist Zoltan Pozsar, who parsed data from the Bank of Russia and financial markets to calculate that a much larger share is held in dollars than official numbers suggest. The Bank of Russia’s dollar exposure is about 50%, compared with the 20% it reports, Credit Suisse estimates.