Emerging Market Central Banks Continue Buying Gold

THE CENTRAL BANKS of three emerging market economies continued Buying Gold in April, figures published by the World Gold Council show.

Russia, Mexico and Belarus have now added to their Gold Bullion reserves in February, March and now April.

Russia was the most active, buying 13.7 tonnes – worth nearly $50 million at current prices. This takes its total gold reserves to 824.8 tonnes – 7.8% of total reserves.

Georgy Luntovsky, deputy chairman of Russia's central bank, said in January that the country aims to boost its gold reserves, and that the central bank will continue Buying Gold at an annual rate of no less than 100 tonnes.

So far this year the Central Bank of Russia has bought 36.2 tonnes of Gold Bullion.

Mexico, meanwhile, added 5.9 tonnes in April, while Belarus bought 1.1 tonnes.

The Banco de Mexico – whose governor Agustin Carstens has put himself forward to be the next head of the International Monetary Fund – was Buying Gold in such large quantities in the first quarter of 2011 that it increased its Gold Bullion holdings more than 12 times. 

Mexico's latest purchase takes it to 106.1 tonnes.

Carstens explained the decision last month as offering "the best risk-return balance" for the central banks investments.

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