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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Are they planning something?.. Eastern countries buy huge quantities of gold

    Rocky
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    Are they planning something?.. Eastern countries buy huge quantities of gold Empty Are they planning something?.. Eastern countries buy huge quantities of gold

    Post by Rocky Wed 12 Apr 2023, 5:18 am

    Are they planning something?.. Eastern countries buy huge quantities of gold

    Are they planning something?.. Eastern countries buy huge quantities of gold 11736



    money and business
       


    Economy News-Baghdad
    The Reserve Bank of India followed China's lead with massive purchases of gold in March, according to data from the World Gold Council (WGC).
    A few days ago, data reported that the People's Bank of China bought nearly 18 tons of gold last March.
    With these massive purchases, it appears that the eastern axis, along with Russia, are planning something to do with replacing the dollar in the long term as a reserve currency.
    However, these purchases also played a major role in supporting gold prices over the past few weeks, as they have been hovering near $2,000 an ounce.
    extensive purchases
    “India bought 3.5 tons of gold bars last month, taking the total for the first quarter to 7.3 tons. The central bank now has 794.6 tons of gold in its reserves,” said Krishan Gopaul, senior analyst at the World Gold Council.
    He added, "Looking at the weekly data from the Reserve Bank of India, it shows that their gold reserves increased by 3.5 tons in March. This brings net purchases in the first quarter of this year to 7.3 tons and total gold reserves to 794.6 tons." .
    This comes after the Reserve Bank of India bought 3.8 tons of gold in February. Last year, the central bank also added 33 tons, 57% less than in 2021. This was in contrast to other emerging central banks such as China and Turkey that have ramped up their annual purchases, leading to new record levels of gold purchased. in 2022.
    The Indian news also comes just days after the People's Bank of China announced an additional gold purchase of 18 tons in March, marking the fifth consecutive month of gold buying. The total gold reserves in China are now 2,068 tons.
    The secret of high gold
    One of the secrets of gold prices remaining near $2,000 levels over the past few weeks is that the precious metal has received massive support from central bank purchases. Countries continued to add gold to their reserves in February, with gold purchases marking the strongest start to the year since at least 2010, according to the latest data from the World Gold Council (WGC).
    The World Gold Council said on Tuesday that global gold reserves increased by 52 tons in February, an increase for the eleventh month in a row. In January, central banks bought 74 tons of gold. This follows record highs last year, when 1,136 tons were purchased.
    Since the beginning of the year until today, the net purchases of central banks amounted to 125 tons. "This is the strongest start since 2010," said Krishan Gopaul, senior analyst at the World Gold Council.
    biggest buyers
    The largest buyer in February was the People's Bank of China, which bought nearly 25 tons. This was China's fourth monthly increase, as the People's Bank of China added 102 tons of gold.
    Turkey's central bank accumulated gold for the 15th month in February, adding 22 tons to its reserves. Türkiye was the largest buyer of gold last year.
    The Central Bank of Uzbekistan added eight tons, Singapore bought seven tons, and the Reserve Bank of India added three tons.
    While the Kazakh National Bank was the sole seller, it sold approximately 13 tons of its reserves.
    The World Gold Council added that the February data excludes the newly disclosed Russian figures. Russia revealed that it had bought one million ounces (31 tons) of gold between February 2022 and March 2023.
    "Based on the new information, gold reserves now represent 24% of Russia's international reserves," Gobul said.
    What are the motives for buying gold with such intensity?
    Central banks, especially in countries that are trying to get rid of the dominance of the dollar in international commercial transactions, are trying to diversify and maximize their reserves away from the dollar in order to limit its strength and influence, whether internationally or locally within these countries. Reducing the dominance of the dollar is one of the main motives for the People's Bank of China to buy gold in order to diversify reserves and provide a cover for the national currency, the yuan, away from the dollar, which represents a step at the same time towards undermining the influence of the dollar, and reducing global dollar dominance over reserves and commercial transactions.
    Beijing has previously called for the use of the International Monetary Fund's currency "Special Drawing Rights" to replace the dollar as a global reserve currency, and is also seeking to expand the scope of commercial and financial transactions with its partners in national currencies, whether with BRICS countries or with countries outside the organization.
    Meanwhile, countries like Russia have resorted to boosting their purchases of gold. With the aim of reducing the influence of the dollar, and supporting reserves in the face of Western sanctions, as Russia bought more gold when the ruble lost a large part of its value against the dollar; As a result of the sanctions imposed on it after its annexation of Crimea in 2014. Currently, in light of Western sanctions on Moscow, the Russian Central Bank has tended since March 2022 to buy gold massively in order to support reserves. 

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    Added 04/11/2023 - 9:17 PM


    https://economy-news.net/content.php?id=33503
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