Taher Morsi, the Director of Market Research Department at Sabaek Misr corporation that the ban of the Russian gold by the G7 members would result increase in gold prices.
Morsi added that the decision will be used as a justification for more increases in several commodities as media promoted that the Russian war is the main reason for inflation, and the jumps in energy resources prices.
He highlighted that the US Federal Reserve controls the world markets, and the activation of such a decision by the US could be a trap for countries that seek enhancing their gold reserves.
Moreover, the US seeks to create a sense of distrust of gold among countries to preserving the value of the US dollar and avoid the repetition of 1970 crisis when Russia, and China linked their economies by gold instead of depending on the US dollar.
Morsi explained that the US economy is weakening as US opponents in the world economy linked their economies to commodities instead of the US dollar.
Therefore, he highlighted that the Russian economy won’t be impacted by the decision or any kind of sanctions as it depends on commodities, and production that’s why, the state barely impacted by the aftermath of the sanctions despite of the high expanses of war.
The official added that the western countries are no longer the only controllers in the market of gold as Shanghai markets holds fine part of the gold trades globally, in addition, India now is considered the biggest exporter of gold in the world.
He concluded that in 2008 after the reformation of the Russian economy, Russia barely depended on the US dollar for the reserves system, and in 2014, it started to be more connected to Asian markets instead of the European ones.
Contributed by: Rana Atef