Thursday, May 30, 2019

Central bank gold buying goes beyond just major economies as Serbia and the Philippines join in the fun

Whether it was the Bank of International Settlement's (BIS) new policy shift that now acknowledges physical gold as a Tier 1 reserve asset, or the fact that global de-dollarization is occurring in full swing, gold buying by central banks is at its highest levels in over 40 years.

And in a report out on May 30, it appears that accumulating gold is no longer limited to major economies as both Serbia and the Philippines have gotten into the mix.

In a major turn of events, Serbia and the Philippines have decided to join the global bullion-buying spree amid similar efforts by world central banks.
According to Vecernje Novosti, Serbia will increase its gold reserves from 20 to 30 tonnes by the end of 2019, and then up to 50 tonnes over the next year as a safety measure.
The decision was reportedly made following the meeting of the country's president, Aleksandar Vucic, with an IMF delegation, where the fund's representatives told him that they'd approve of Belgrade's gold-buying if it fit into Serbia's strategy of beefing up foreign exchange reserves.
The current data of the National Bank of Serbia suggest that the nation's foreign exchange reserves are presently worth 11 billion euros.
As for the Philippines, the Bangko Sentral ng Pilipinas has announced that a law has been passed exempting gold sales by small-scale miners to the central bank from excise and income taxes to boost the country's foreign exchange reserves and prevent smuggling. - Sputnik News
While talk of returning to a global 'gold standard' in some form or fashion has resurfaced in recent years due to the rise of China and the advent of dollar rejection, for now the precious metal is being seen as an important part of a nation's attempt to remain solvent in a world saturated by debt.  And smaller economies like Serbia and the Philippines are not he only ones jumping onto the bandwagon as we saw the nation of Kyrgyzstan start their own gold accumulation going back to 2016.


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