South Korea will buy gold to reduce the dollar in his reservations
20-10-2010 golden marketThe central bank of South Korea, the 5th country with major currency reserve on a global scale, studies to realize golden buys with the target to diversify his portfolio, in which the dollar represents 63 % of the whole for 290.000 million dollars, as informs the newspaper “Financial Times“.
In fact, South Korea at present is one of the economies advanced with minor reservations of gold, which scarcely add 14 tons or 0,2 % of his currency reserve, opposite to the average of 10 %, according to the information of the World Council of the Gold, and in contrast with countries like Germany or France, which support more than 50 % of his reservations in the valued metal.
The governor of the issuing institute surcoreano, Kim Choong-Soo, affirmed before a parliamentary commission that this is a question that must be treated "carefully" before the record prices reached by the gold and the high volatile nature on the markets.
“We must treat carefully the question of increasing the golden volume in the reservations”, it indicated, in what he supposes the first occasion into which a representative of the Bank of Korea admits in public the possibility of buying gold.
Also, this declaration takes place in a context in which several Asian countries, including China, India or Bangladesh, his golden reservations increase before the fears of a climb in the international currencies war and to the impact of the measurements of quantitative mitigation of the Federal Reservation of the USA in the value of the dollar.
According to the counsel of precious metals GFMS:
“With the emergent countries buying and the Central Bank of Europe interrupting his sales, the central banks will be clear golden buyers this year and the next one for the first time from 1988.”
Central bank of South Korea bok.or.kr
19-10-2010
