Philippines Central Bank Adopts Policy of Active Gold Trading

(Bloomberg) — The Philippine central bank is shifting to active gold trading as the monetary

(Bloomberg) — The Philippine central bank is shifting to active gold trading as the monetary authority seeks to better manage the country’s international reserves, Governor Benjamin Diokno said on Saturday.



Gold casting grain sits inside a glass container at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.


© Bloomberg
Gold casting grain sits inside a glass container at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.

The bank has moved from “passive” gold trading because of a change in the price dynamics of the metal, a new law that makes purchases of it from small miners more attractive and the country’s record-high reserves, Diokno said in a mobile-phone message to reporters.



Gold casting grain sits inside a glass container at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.


© Bloomberg
Gold casting grain sits inside a glass container at the Uralelectromed Copper Refinery, operated by Ural Mining and Metallurgical Co. (UMMC), in Verkhnyaya Pyshma, Russia, on Thursday, July 30, 2020. Gold surged to a fresh record Friday fueled by a weaker dollar and low interest rates. Silver headed for its best month since 1979.

Gold Rush by Central Banks Gets Boost as Philippines Joins Push

Studies show that the optimal portfolio mix of gold to reserves should be 9.8%, while a World Bank survey suggested around 9.55%, according to Diokno. The Philippines’ ratio exceeds 10%.

The Bangko Sentral ng Pilipinas “will always be opportunistic in its reserves management,” the central bank chief said. The country posted gross international reserves of $98 billion at end-July.

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