THE Bangko Sentral ng Pilipinas (BSP) has defended its decision to sell a portion of the country’s gold holdings, stating that it merely capitalized on high market prices to strengthen the country’s financial buffer against external shocks.
The central bank issued this statement in response to a report that revealed the Philippines sold the most gold globally in the first half of 2024, while other nations were increasing their gold reserves.
“The BSP sold gold during the first half of the year as part of its active management strategy of the country’s gold reserves, which form part of the country’s Gross International Reserves (GIR),” the BSP explained.
The BSP typically draws upon this reserve fund during extreme economic conditions, such as significant currency fluctuations and capital outflows, especially when export earnings or foreign loans are limited.
“The BSP took advantage of the higher prices of gold in the market and generated additional income without compromising the primary objectives for holding gold, which are insurance and safety,” the statement added.
