BIZ BUZZ: Remolona done with gold sale fuss
Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. has had enough of people trying to stir controversy about the central bank’s management of the country’s international reserves, particularly the sale of gold.
Speaking to members of the Tuesday Club, Remolona said proceeds from the sale of gold go back to the country’s gross international reserves (GIR), which soared to a three-month high of $106.7 billion in February.
His message was clear: No gold was stolen from the BSP and any sale of the precious metal is part of regular portfolio management.
While he did not make any direct references, the remarks of the BSP chief sought to dispel allegations of mismanagement of the central bank’s gold holdings, with the most recent claim coming from former President Rodrigo Duterte. It may be recalled that Duterte had accused President Marcos of stealing and selling the country’s gold reserves.
The BSP chief explained that high global prices of the precious metal could push up the share of gold to total GIR beyond the ideal ratio of 8 to 10 percent. This, in turn, may prompt the BSP to sell some of its gold reserves to bring the ratio back to recommended levels.
Ultimately, Remolona said that while gold is a good hedge during global uncertainties, it is a “very poor investment” that carries costly custody fees.
“We don’t bet on the price. We’re not good at that because we don’t know when prices are going up or down,” he said.
“’Yong mga nagsasabi na dapat ’di kami nagbebenta, eh sila ang mag-invest,” he added.
