The Central Bank of Serbia has announced the purchase of 9 tons of gold, increasing its gold reserves by almost 50 percent. The measure is intended to promote financial stability.
More and more countries are using gold to hedge themselves against currency and financial market turbulence. Now Serbia’s central bank has also announced the purchase of a substantial amount of gold. In October, on the advice of Serbian President Aleksandar, Vučić bought 9 tons of gold. The share of gold in the total currency reserves of the central bank was 10 percent.
Government’s wishes fulfilled
“We have completed the transactions to buy gold and Serbia is now safer with 30.4 tons of gold worth about 1.3 billion euros,” explained Jorgovanka Tabakovic, the president of the Serbian Central Bank, according to BNN Bloomberg. The acquisition of gold is the latest in a series of actions to increase financial stability. The gold was paid 395 million euros, which corresponds to 1,503 US dollars (approx. 1365 euros) per ounce. By buying gold, Serbia’s central bank has increased its gold reserves by almost 50 percent.
Rising gold reserves
Since last year, in addition to the regular gold buyers, Russia, many former Soviet republics, China and Turkey, countries such as Poland, Hungary, Iraq and Morocco have also had a strong impact on the gold market.