Brazil’s central bank purchased over 62 tons of gold in three months through July 2021, raising the nation’s reserves to nearly 130 tons. The estimated growth of physical holdings reportedly amounted to 92.4%. The bulk purchase of 41.8 tons was recorded in June. In May and July, the regulator acquired 11.9 tons and 8.5 tons, respectively, according to Exame, a Sao Paulo-based media outlet. In monetary terms, Brazil’s gold holdings saw substantial growth of 98.5% to $7.596 billion as the pandemic drove global gold prices to new heights.
The move marks the first major purchase in the past decade, as the central bank had barely changed the amount of reserves invested in the precious metal since November 2012.
Brazil’s international gold and foreign exchange reserves totaled $355.7 billion as of the end of July, with the share of gold increasing to 2.1%. At the end of 2020, the share of the precious metal in Brazil’s foreign reserves totaled 1.2%, standing at $4.101 billion.
In the first six month of the current year, the country became the world’s third-biggest buyer of gold after Thailand and Hungary. Brazil’s central bank purchased 53.74 tons, according to data tracked by the World Gold Council (WGC).
“Central banks are likely to continue buying gold on a net basis in 2021 at a similar or higher rate than in 2020, driven by a continued focus on diversification and risk management,” the WGC projected, noting that central banks globally bought 333 tons of gold in the first six months of the current year.
Original source: RT
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