IBAFIN

In recent times, an intriguing trend has emerged with central banks (CBs) around the globe significantly ramping up their gold purchases. This phenomenon raises an array of questions and theories regarding the underlying motives for such actions. Central banks traditionally buy gold for several reasons: as a safety net, to bolster confidence in their economy,…

In today’s economic climate, central banks around the world are grappling with the relentless challenge of inflation. This phenomenon, which involves the gradual increase in prices and the corresponding decrease in the purchasing power of money, directly impacts the reserves that central banks hold. Traditionally, a 2% inflation rate is considered manageable and even desirable…

In the wake of the COVID-19 pandemic, central banks (CBs) worldwide engaged in substantial liquidity injections to support their economies. This unprecedented measure left central banks with significant amounts of “loose cash” in the system, a by-product of their efforts to stabilize markets and ensure liquidity. As economies begin to stabilize and look towards recovery,…

In recent times, a notable trend has emerged where central banks (CBs) are increasing their gold reserves at a significant pace. This development raises questions about the underlying motivations and the potential implications for global economics and geopolitics. Here, we delve into the reasons behind central banks’ substantial interest in gold and explore the various…