The National Bank of Serbia has been instructed by President Aleksandar Vucic to continue boosting gold reserves in order to create an economic bulwark for the country.
“I think we’ll continue doing that because of what we see in which direction the crisis in the world is moving,” Vucic told reporters in Belgrade, citing slowing growth in the euro area which is Serbia’s top trading partner and main source of investment.
Vucic’s advice comes as the country added nine tons of the precious metal last month to increase its bullion reserves to more than 30 tons. Serbia’s gold holdings now make up ten percent of the country’s total reserves.
Central bank Governor Jorgovanka Tabakovic said the country paid about $434 million for the gold it bought last month, or $1,503 an ounce. Tabakovic said the acquisition is the latest in a series of moves to shore up financial stability by changing the structure of foreign debt and increasing the share of dinars and euros.
Serbia’s gold buying follows the lead of central banks across the world, including top buyers Russia, China, and Turkey.
Global purchases of the precious metal totaled 547.5 tons in the third quarter of 2019. Analysts say the trend is likely to continue in the coming years due to heightened global tensions, currency wars, and the course of de-dollarization.
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