The central bank continued to raise its balance of gold bars as a safe asset, as the value of what it bought from them, during the first four months of this year, amounted to about two billion and 333 million dirhams.
The «Central» in statistics released yesterday, that at the end of last April, its assets of the yellow metal amounted to six billion and 377 million dirhams, a growth of 57.7%, compared to four billion and 44 million dirhams at the end of December 2019.
He added that he bought, in April 2020 alone, a gold worth 426 million dirhams, noting that the cumulative balance at the end of April amounted to six billion and 377 million dirhams, compared to five billion and 951 million dirhams at the end of the previous March, a growth of 7.2%.
Gold is among the various assets that the Central Bank owns, including: liquid funds, certificates of deposit, and securities held to maturity.
In April 2015, the Emirates Central Bank decided to return to forming the gold reserves for the first time in eight years.
To that, a member of the Board of Directors of Abu Dhabi Chamber of Commerce and Industry, Chairman of the Board of Directors of Al-Jazirah Group for Gold and Jewelery, Hamad Al-Awadi, told «Emirates Today»: «The central bank’s policy is to diversify its assets in general from gold, bonds and safe assets, especially in times of crisis». .
He added that despite the negative effects of the crisis caused by the spread of the Corona virus on the global and local economy, gold is a guaranteed store of value, pointing out that buying gold in this period supports the stability of the local currency.
Al-Awadi said that «the last weeks have witnessed stability in the price of gold, although it recorded a decline at the beginning of the (Corona) outbreak, given the tendency of countries to raise their balance of the precious metal, as it is a decoration and a store of value.
He pointed out that "the (Corona) crisis has economic, financial and social repercussions that may extend for a period that may affect the movement of trade, export and traditional investment, so we expect gold to witness a great turnout from investors and individuals as well as a safe haven."
Al-Awadi pointed out that the central banks around the world are raising their gold assets, and moving away from volatile assets with high risks, or that have been affected by Corona.
He stated that reopening markets and shops locally would stimulate the movement of buying and selling among individuals as well, thus raising the price and achieving gains, and increasing demand in the global market.