WASHINGTON, July 30. /TASS/. Russia's large foreign exchange reserves help the country mitigate the impact of external factors on its economy, the International Monetary Fund (IMF) said in its External Sector Report.

"Russia’s large FX reserves and floating exchange rate regime continue to help absorb shocks. The remaining restrictions on cross-border transfers curtailed capital outflows and helped preserve buffers," the report said.

"Despite the loosening of restrictions, net private capital outflows declined from 2.3 percent of GDP in 2024 to 1.8 percent in 2025," the authors noted.

However, the IMF added that Russia's external position last year remained moderately weaker than its medium-term fundamental forecast. According to the fund's experts, the conflict in Ukraine, Western sanctions, and the ongoing war in the Middle East create a high degree of uncertainty for analyzing Russia's economic indicators.

The Bank of Russia reported that the country's international reserves rose by $0.5 billion over the week to $722.9 billion as of July 17, 2026. These highly liquid foreign assets, managed by the central bank and the government, comprise foreign currency, Special Drawing Rights (SDRs), Russia's reserve position in the IMF, and monetary gold. Following the start of Russia's special military operation in Ukraine, Western nations sanctioned the Bank of Russia, freezing its gold and foreign exchange reserves and banning all transactions involving the central bank's assets or any entities acting on its behalf.