Bolivia to buy more gold to strengthen reserves as prices set to rise - Bolivia's president
(Kitco News) A proposed draft bill would authorize the Central Bank of Bolivia (BCB) to purchase the country's domestically-produced gold to strengthen its international reserves, according to Bolivia's President Luis Arce.
"We submitted a draft bill that authorizes the Central Bank of Bolivia (BCB) to purchase domestically-produced gold to strengthen the Net International Reserves (NIR) and authorizes it to carry out operations in international markets,' Arce tweeted.
Arce added that gold had great returns over the last decade, and the precious metal is expected to keep rising, which is why it is essential to strengthen Bolivia's reserves with it.
"The Plurinational Legislative Assembly must analyze that the price of gold has been on the rise in the last decade and is expected to increase. It is necessary to provide the BCB with mechanisms and standards so that it can apply an efficient management policy for our Reserves that benefits #Bolivia," Arce said in another tweet.
La Asamblea Plurinacional debe analizar que el precio del oro fue en ascenso en la última década y se prevé que aumente. Es necesario facilitar al BCB mecanismos y normas para que aplique una política de administración eficiente de nuestras Reservas que beneficie a #Bolivia.— Luis Arce Catacora (Lucho Arce) (@LuchoXBolivia) June 16, 2021
The Bolivian lawmakers are currently debating the bill, which would give the BCB first dibs on all the domestically-produced gold, Bloomberg reported on Wednesday. The central bank would buy the precious metal from local producers at international prices in exchange for tax breaks.
Also, under the new legislation, Bolivian producers would require certification to sell their gold abroad. Exports of gold would be allowed, but only after the BCB has met its annual gold buying target.
Bolivia's current gold reserves stand at around $2.6 billion.