Why did Russia have their foreign currency reserves in overseas banks?

The Politicus
Feb 28, 2022 12:54 PM 0 Answers
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According to this BBC article, Russia anticipated that their invasion of Ukraine would lead to sanctions and one of their ways to sanction proof their economy was to build a large foreign currency reserve to prop it up.

However, according to this Washington Post article, it seems a lot of those reserves are held in western banks and are now being frozen.

Doesn't having the money overseas defeat the purpose of having built up the foreign reserves at all? Why didn't they store the money in their own banks?

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