Dip in gold reserves is strategic trading – Central Bank

first_imgThe Bank of Guyana (BoG) has defended its decision to sell off portions of Guyana’s gold reserves, saying the move was reflective of “strategic trading”.In a statement on Thursday, Central Bank clarified that it trades gold and replenishes the stock based on market opportunities. The bank noted that gold is not managed as an exclusive reserve asset for holding, but as part of a portfolio of assets.“Gold may be sold for a number of reasons; including maximising profits, rebalancing of the portfolio, meeting liquidity needs, or optimising opportunities in other asset classes. With the price of gold as high as US$1364 recently, the bank has been trading gold as any bank worth its salt will do,” BoG posited.To this end, it added that “Dips in the reserves therefore, reflect strategic trading rather than any involuntary disposal of gold.”As such, the Central Bank assured that the benchmark for the holdings of international reserves are vigilantly adhered to and upheld. It further stated that the domestic market has an excess supply of foreign currency to meet domestic demand while maintaining a stable foreign currency exchange rate.On Wednesday,

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