Armenia’s Central Bank still not to keep external assets in gold

20.05.2014 13:53
Armenia’s Central Bank still not to keep external assets in gold

YEREVAN, May 20. /ARKA/. The Central Bank of Armenia intends to continue not keeping external assets in gold, head of the Central Bank of Armenia Artur Javadyan said.

It was a right thing to sell the gold reserve uib December 2013, and the dynamics of gold prices over the last year or two proves it, Javadyan said.

The head of the central bank said gold cost $1,920 per ounce at world exchanges in 2013 and it cost a bit higher than $1,290 today.

‘Now imagine what amounts we would have lost’, Javadyan said.

On Monday Armenia’s president Serzh Sargsyan suggested the parliament reelecting Javadyan as head of the central bank.

At the end of 2003, the Central Bank of Armenia made a strategic decision not to use gold in its external gross reserves. The bank received about $17 million from selling the gold reserves of a total of 1.4 tons. During 2004 the bank converted these funds to pounds and made investments in this currency. Consequently, real profit rate of the investments was about 13% (pound strengthened vs dollar by 8.4%), whereas profit rate of investments in gold mar reach maximum 9%.

According to the Central Bank, the country’s gold reserve had remained unchanged before the sale – 1,396,000 kilograms 544.42 grams that were assessed at $17.1 million as of October 1, 2003.

Armenia’s gold reserves that were valued at from $15 million to $18 million were sold at the best price – over $400 per Troy ounce. –0--


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