BCV studies investing in gold and trading with Chinese currency to maintain foreign reserves

Praia, Oct 2 (Inforpress) – The Bank of Cabo Verde is considering the possibility of having gold and Chinese currency reserves as a way out to maintain the level of foreign reserves that reached the historical maximum of around 700 million euros.

The information was advanced this Tuesday by the governor of BCV, João Serra, who said that the central bank wants to have in addition to assets in euros and dollars, other forms of income, especially in a context of some uncertainty.

“Gold is currently a haven asset that is earning slightly more than assets in euros and dollars. Let’s also see if it will be possible to trade with the Chinese currency. As you know, China has become one of the largest powers in the world and Chinese assets are yielding a little more,” he said.

João Serra, who was speaking to journalists at the end of the first reserve management meeting of the central banks of the Portuguese-speaking countries, said, however, that the BCV will continue to be a conservative, non-speculative investor and not running any kind of risk, taking into account the fundamental role of foreign reserves for the country’s own survival as a sovereign state. At the moment, according to the governor, the country has a “very comfortable” reserve stock that can guarantee the fixed parity of the escudo against the euro, the importation of the necessary goods and services and the possibility of regularizing, in due time, the commitments in terms of external debt, either in dollars or euros.



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