Bolivia’s forward gold sales are legal workaround – expert
Central bank raises almost $600 million in hard currencies by committing to sell bullion at future date
The Central Bank of Bolivia’s decision to sell gold on a forward basis in exchange for the immediate delivery of foreign currency does not breach its legal obligations, an expert in reserve management tells Central Banking.
The bank announced in a report last week that it had signed two forward contracts to deliver 4.32 tonnes and 1.08 tonnes of gold in a year’s time. In return, it said it would immediately receive payments of $469 million and $120 million respectively to bolster its FX reserves
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