The Bank of Cabo Verde now holds gold reserves of almost a tonne, worth over 49 million euros, under the strategy of “diversification of foreign assets” started in August by the central bank.
According to data from the 2020 report and accounts of the Cape Verdean central bank, to which Lusa had access on Tuesday, until 2020 the bank did not have any gold reserves, but ended the year with a weight of 6.68 percent of that metal in the bank’s assets, which totalled over 736.6 million euros on 31 December.
“As part of the strategy of diversification of investments in foreign exchange reserves, in a context of scarcity of opportunities to monetise the reserves, investment in gold has proven to be opportune, taking into account its status as a refuge asset. The bank started, in August 2020, an investment strategy in gold, whose position, on 31 December 2020, amounts to 49.2 million euros, corresponding to one ton (32,000 troy ounces),” the report and accounts read.
The document adds that the amount of gold purchased “has remained unchanged, since September 2020, at one tonne”.
However, the report and accounts also identifies “losses seen with the revaluation of gold” at the end of 2020, valued at €2.1 million.
This drop is explained by the decline in the value of the international price of an ounce of gold, which fell from US$1,971.22 at the end of September to US$1,777.38 in December.
Most of the central bank’s assets are foreign assets (nearly 75%) – strongly affected by the exchange devaluation of assets in US dollars – and nearly 6% in domestic securities.
Cabo Verde joins the list of Portuguese-language countries that, according to the World Gold Council organisation, hold gold reserves, which was led at the end of 2020 by Portugal (14th worldwide, 383 tonnes).
Brazil held 67.36 tonnes and Mozambique 3.93 tonnes, according to the same report.
