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Central Bank’s gold reserves expected to rise to 9 million tonnes in 2018 |
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A report by the Ministry of Economy predicts that the gold reserves of the Central Bank of the UAE will increase to 9 million tonnes in 2018, a growth of 19.5 percent, compared to 7.53 percent in 2017. The majority of Central Bank's holdings are usually in various foreign currencies, as they can be used for trading, including for selling and purchasing. The Central Bank sold all its gold before 2015, but it began to re-constitute its gold reserves during the same year, as well as its basket of foreign currencies, including the US, dollars. The Bank’s reserves of gold only make up a small percentage of its total balance of foreign currencies, but it is positive in terms of the diversification of its reserves. According to recent statistics, the value of Bank's gold bullion balance reached AED1.17 billion at the end of February 2018, compared to AED1.152 billion in December 2017. The price of gold, which is often considered a safe haven for investments around the world, recently improved and is expected to continue rising this year, due to the growing demand of governments, institutions and individuals. |
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