Countries fed up with the “tyranny of the dollar” began to actively buy gold to replenish their foreign exchange reserves. About Writer financial times.
Amid the news that states’ total gold purchase volume is 673 tons in 2022, investors are worried that this precious metal will be used to circumvent sanctions. Given that Western and Eastern countries are increasingly moving away from each other, the role of gold in national reserves is only growing, replacing the so-called tyranny of the dollar.
However, some market experts doubt that gold can replace the dollar, especially in Russia and China, which are under various restrictions. Despite the fact that it is much easier to pay with gold, Russia is almost completely excluded from the international banking system.
According to the authors of the article, the growth of gold reserves is secretly a purely pragmatic approach of Russia and China and becomes a continuation of the policy of avoiding sanctions. That’s why authorities monitoring the implementation of sanctions need to pay attention to the London gold market, which is known for frequent money laundering practices.
On the World Gold Council (WGC) website on January 9 reportedHe reported that at the end of November 2022, world central banks had purchased a total of 50 tons of gold. In total, official financial institutions purchased 673 tons of precious metals last year and most of the assets were purchased in the third quarter.