Uganda, Feb. 5 -- The US Senate Committee on Foreign Relations approved legislation last Wednesday intending to confiscate the Russian central bank's foreign exchange reserve holdings. The money realised from these assets will go towards funding the Ukrainian war effort.

These reserve assets usually include US treasury securities together with cash deposits in euros and dollars. Following the fall of the Soviet Union, the Russian central bank started holding US treasury securities with varying maturities as part of its foreign exchange reserves.

But when Elvira Nabiullian took over as head of the Russian central bank, she allocated 25 percent of the entire Russian central bank reserve assets for physical gold stored in Russia. She fores...