…Central Bank rubbishes Guyana Times story

THE Bank of Guyana said it has noted with alarm an article in the Guyana Times captioned ‘Bank of Guyana gold reserves plummet,’ and knocked the story as misleading and reckless.

“For the record, the Bank of Guyana trades gold and replenishes the stock based on market opportunities. Gold is not managed as an exclusive reserve asset for holding, but as part of a portfolio of assets,” the Central Bank said in a statement.
It explained that gold may be sold for a number of reasons; including maximising profits, rebalancing of the portfolio, meeting liquidity needs, or optimising opportunities in other asset classes.

According to the Bank, with the price of gold as high as USD1, 364 recently, it had been trading gold as any bank worth its salt will do.
“Dips in the reserves therefore, reflect strategic trading rather than any involuntary disposal of gold,” the BoG asserted.

“BoG therefore wishes to assure that the benchmark for the holdings of international reserves are vigilantly adhered to and upheld. Additionally, the domestic market has an excess supply of foreign currency to meet domestic demand, while maintaining a stable foreign currency exchange rate,” the statement ended.