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Bangladesh Bank to invest gold |
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October 19, 2000
Dhaka, Oct 18 (UNB) - Bangladesh Bank is contemplating investing gold, which remained in deposit with the Bank of England, to earn interest as the asset is losing value on the international market. "The process is yet to take final shape…We are contacting various companies in the world to assess the market," a senior official of the central bank told UNB today (Wednesday). He said gold price lost around US$126 per troy ounce and now came down to US$270 per ounce from US$396 four years back. "It's our loss to sell out gold in the declining trend of price, based on which we are planning to invest it against interest," he said. Internationally recognised dealer companies can only operate this business centred only on London and Switzerland. The dealers pay interest against investment in terms of gold. Officials said the central bank started thinking about gold investment three months back, for the first time in the country, following an evaluation that keeping reserve of gold yields nothing but causes expenditure like rents being paid to the foreign banks. "We have some gold reserve with the Bank of England…we have to pay rentals for it," said one of them. Traditionally, Bangladesh Bank reserves gold, which is now being considered bad asset globally. About selling out gold, as reported in a section of newspapers, senior central bank officials said the reports were baseless. The central bank does not hold enough gold that can be sold out, they said, adding that the gold reserves with the Bangladesh Bank are much less than the reserve proportion of the central banks of other countries. A statement said gold reserves worth about Tk 159 crore remained with the central bank as on October 5, which was only 1.40 per cent of the total money circulation of over Tk 11,338 crore. |