Why Does The BSP Hold Gold?
In 2013, Ron Paul, former US congressman asked Ben Bernanke, former Chairman of the Federal Reserve why central banks held gold . The former fed chair answered that it's simply because it's a long-term tradition. During the height of the Coronavirus lockdowns, gold prices went up rapidly. This trend did not go unnoticed among Filipinos. Cebuana Lhuillier reported high turnover of rematado (foreclosed) jewelry during that time period. Perhaps due to the heightened interest of gold during this time, the Banko Sentral ng Pilipinas received several questions regarding the purchase of gold in the Philippines and in June of 2020 decided to release an infographic where they answer some common questions that we might have about gold. Why does the BSP hold gold? The Banko Sentral ng Pilipinas gives us a more honest answer to this question compared to the Federal Reserve. Gold is a real asset and no one's liability! It couldn't get any more honest than that. That means that