Bolivia bought 205 kilos of gold in two months to strengthen its reserves

The Central Bank of Bolivia (BCB) bought 205 kilos of gold fine in the two months of validity of the regulations of the law approved by the Government of Luis Arce to “strengthen” the Bookings internationals in the country, which reported declines this year.

The purchase operations carried out by the B.C.B. in two months “they reach 205 kilos of gold finewhich represent close to 30% of what was acquired” in 12 years of validity of the previous standard, explained the issuing entity in a press release.

Acquisitions framed in Law 1503 on the Purchase of Gold destined to Strengthen International Reserves “allow the BCB to foresee greater dynamics in the purchases of fine gold, which will contribute to strengthening the Bookings Net International (RIN)guaranteeing the flow of foreign currency to the economy,” the entity indicated.

He also specified that the conversion of reserves of gold in foreign currency was intended to “strengthen liquid reserves” to “meet the obligations” of the country with its external creditors, “such as the payment of the external public debt service, including the timely cancellation of sovereign bonds” issued in 2013.

The BCB added that with the validity of Law 1503 “the normal functioning of the country’s international payments is guaranteed, the liquidity requirements of the financial system are met” and the strengthening of the RIN is supported to “maintain the stability of the economy.” ”.

At the beginning of February, international reserves were at 3,538 million dollars, one of the lowest levels since 2014, when they reached 15,122 million.

After five months without having reports on the status of the RIN, the BCB indicated in July that as of the end of April they were at a level of 3,158 million dollars.

Last May, President Arce promulgated Law 1503, which aims to strengthen the RIN through the direct purchase of gold from local producers to refine it and certify it internationally as an asset in the reserves.

It also empowers the issuing entity to carry out financial operations with gold in international markets.

The standard establishes that the BCB must maintain a minimum of 22 tons of Bookings of gold and will also have to report every four months to the Legislature on the operations carried out with this asset.

The decrease in reserves coincided with the lack of dollar liquidity that has been recorded for a few months in the country and which the Arce Government attributed to an “unusual demand” for the currency in the financial system.

(With information from EFE)