Central Banks Increase Gold Reserves: Global Trend Towards De-Dollarization in 2023

Central banks bolstered their reserves with gold purchases in July, according to the latest International Monetary Fund (IMF) data on International Financial Statistics. World Gold Council senior analyst, Krishan Gopaul, explained the gold purchases of three central banks in recent Twitter posts.

Turkey and the Czech Republic increase their Gold reserves

The data from the Central Bank of Turkey shows an increase in their gold reserves by 17 tonnes in July. This is in addition to the 11 tonnes purchased in June. Gopaul also noted that the Czech National Bank added 2 tonnes to its gold reserves in July, bringing their total net purchases this year to almost 10 tonnes.

Poland and China: Major Players in the Gold Market

However, according to the IMF data, the biggest buyer was the National Bank of Poland, which increased its gold reserves by 22 tons. At the beginning of the week, Gopaul shared that China bought 23 tons of gold in July. As a result, China's official reserves have been increased to 2,136 tonnes in 2023.

De-dollarization and Russia's Financial Strategy

These constant gold purchases from China highlight the global trend of de-dollarization. In addition, the Russian Ministry of Finance announced last week that it will start buying currency and gold again in August. This decision follows 18 months of selling or waiting, a reaction to high oil prices. Experts believe that central bank demand remains a key support for gold prices, despite it having declined in recent months.

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Source:Kitco

Author: Ernest Hoffman