Central bank Mauritius buys gold from Australia

The central bank of Mauritius wants to Buy gold to strengthen confidence in its currency and minimize fluctuations in the exchange rate. In 2009, the island of 1.2 million inhabitants in the Indian Ocean bought two tonnes of gold from the IMF, which converts to the Gold price was worth $72 million at the time.

It is not clear how much gold the island's central bank wants to buy, but according to the finance minister, the gold would come from Australia. This country is one of the top three largest gold producers in the world and is a major supplier of gold to the Asian market. In 2013, the country produced 273 tons of gold, which was mainly destined for export.

According to Seetanah Lutchmeenaraidoo, the finance minister of Mauritius, the island has suffered greatly from the depreciation of the euro against the Indian rupee. Both exports and tourism have suffered as a result. Tourism is the third largest source of income and the European Union is the country's largest market, which also exports a lot of sugar and textiles.

Buying gold as insurance

"Gold remains an important insurance in the current economic context, where currencies are extremely volatile," so Stated Lutchmeenaraidoo at an IMF meeting in Mauritius. It is not immediately clear from the central bank's balance sheet total what percentage of the reserves are held in physical gold. However, it is striking how prominent gold is on the website of the central bank. This way we can find the current price of everything Gold Coins and gold bars and the website advertising Created to buy gold offered by the central bank itself.

The Minister of Finance of Mauritius also told the press that there are plans for an exchange-traded gold fund. Through this fund, the islanders can buy gold tax-free. This will also make it more attractive for the inhabitants of this country to hold precious metals as savings.

Central bank of Mauritius to buy gold