For purpose of increasing the recognition of domestic bars on world markets, the National Bank of the Republic of Kazakhstan plans to sell a small number of bars in the near future - up to 4% of the refined gold volume, annually acquired as part of the priority right, abroad.
As the national bank informed on the Facebook page since the beginning of 2018 quotations for gold on world exchanges fell by about 8%. The main factor behind the decline in the price of gold was the strengthening of the US dollar as a result of higher US Federal Reserve rates and the release of positive data on the US economy.
Kazakhstan’s National Bank realizes the priority right to purchase refined gold from domestic producers. Despite the fact that the liquidity arising from the purchase of gold takes a small share in the monetary base, this factor has a stimulating effect on economic activity in the country. Around 33 tons of refined gold was purchased by the National Bank of Kazakhstan from domestic producers from the beginning of 2018. Currently, Kazakhstan takes the 15th position ahead of Saudi Arabia.
However, tight geopolitical background caused by economic sanctions and trade restrictions against a number of countries increases the volatility of markets and facilitates the search for safer assets by investors.
The role of gold and precious metals as a protection against volatility, both in the foreign exchange market and in the securities market is growing taking into account economic and political non-stability. The gold reserves of central banks are insurance assets that possess the characteristics of security, liquidity and profitability in the long run, according to the National bank’s data.
Herewith, the accelerating the growth of physical volumes of gold by world central banks began in the post-crisis year 2009. Over the past 5 years, reserves in gold have increased in many developing countries. The central banks of Russia, Turkey, China and Kazakhstan were the most active buyers of gold in this period.
Kazakhstan is the leader among the most active buyers (a relative increase) in terms of the growth of the physical volume of gold from 2011 to 2017. However, in absolute terms, Russia (+ 956 tons for 6 years) and China (in the absolute terms) +789 tons for the same period), Kazakhstan purchased about 219 tons from 2011, " the representatives of the National Bank added.
It should be noted the gold portfolio of the National Bank of Kazakhstan as of September 10, 2018, is 333 tons, or 12.8 billion dollars.
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