Bukele Announces That El Salvador Bought the Gold Dip
El Salvador has announced yet another purchase to strengthen its international reserves.
On Thursday, the Central Bank of El Salvador disclosed that it had acquired 9,298 troy ounces of gold in international markets as part of a strategy that seeks to increase the country’s holdings of the precious metal.
The purchase, which reached $50 million, follows a similar purchase of 13,999 ounces of gold in September, brokered for the same price. With these additions, El Salvador’s gold stash rises from 44,106 to 67,403 ounces, valued at $360 million.
The bank highlighted that gold keeps consolidating as a reserve asset in central banks, reaching 20% of the global international reserves, second to dollar-denominated assets.
For this reason, it estimates that this second addition “consolidates the country’s assets in the long term, maintaining a prudent balance in the composition of the assets that make up the international reserves.”
The bank declared:
Gold is an asset of universal strategic value, contributing to supporting El Salvador’s long-term financial stability, protecting the economy against structural changes in international markets, and guaranteeing greater stability and confidence for the population and investors.
President Nayib Bukele celebrated this move, stating that they had just bought the gold dip. Nonetheless, after the purchase was reported, gold and silver experienced heavy losses of 8% and 17% overnight.
El Salvador has continued to add bitcoin to its reserves consistently, adding 1 BTC daily following its “1 BTC a day” program. Currently, the nation holds 7,547.37 BTC valued at over $620 million.
Nonetheless, the number is lower than the figures President Bukele displayed in May due to the current bear market.
FAQ
- What recent action has El Salvador taken to bolster its reserves?
El Salvador has purchased 9,298 troy ounces of gold for $50 million to strengthen its international reserves. - How much gold does El Salvador hold after its latest purchases?
With these acquisitions, El Salvador’s gold reserves increase from 44,106 to 67,403 ounces, valued at approximately $360 million. - What is the significance of gold in central banking according to the Central Bank of El Salvador?
Gold accounts for 20% of global international reserves and is viewed as a strategic asset for long-term financial stability. - How does this gold purchase relate to El Salvador’s bitcoin strategy?
While El Salvador continues to add bitcoin to its reserves, acquiring 1 BTC daily, its current BTC holdings stand at 7,547.37, valued at over $620 million.
