El Salvador’s Central Bank Sells Most of Gold Reserves

Reuters reported that El Salvador’s central bank sold about 80 percent of its gold reserves in March. The move was aimed at diversifying risk and “tak[ing] advantage of the metal’s appreciation,” according to a representative of the bank.

As quoted in the market news:

The country, which has been dollarized since 2001, sold 5.412 tons of gold for $206 million, which will go into the Bank’s reserve portfolios to protect it against market volatility.

The poor Central American nation was the only country to sell gold in March, while Turkey, Belarus, Kazakhstan and Russia increased their holdings, according to data released by the International Monetary Fund on Friday.

El Salvador’s central bank expects the economy to grow 2.8 percent this year, above the 2.2 percent reached in 2014, thanks to a U.S. recovery and lower oil prices.

Click here to read the full Reuters report.