The Bank of Guyana notes with alarm an article in the Guyana Times captioned ‘Bank of Guyana gold reserves plummet,’ published on April 18, 2018. The caption is misleading and the article itself recklessly presents a woeful interpretation of available data.
For the record, the Bank of Guyana trades gold and replenishes the stock based on market opportunities. Gold is not managed as an exclusive reserve asset for holding, but as part of a portfolio of assets. Gold may be sold for a number of reasons; including maximizing profits, rebalancing of the portfolio, meeting liquidity needs, or optimizing opportunities in other asset classes. With the price of gold as high as USD1,364.00 recently, the Bank has been trading gold as any Bank worth its salt will do.
Dips in the reserves therefore, reflect strategic trading rather than any involuntary disposal of gold.
BoG therefore, wishes to assure that the benchmark for the holdings of international reserves are vigilantly adhered to and upheld. Additionally, the domestic market has an excess supply of foreign currency to meet domestic demand while maintaining a stable foreign currency exchange rate.