The Bangko Sentral ng Pilipinas (BSP) on Monday dismissed former President Rodrigo Duterte’s claim that President Ferdinand Marcos Jr. misappropriated and sold the nation’s gold reserves, which purportedly contributed to the depreciation of the peso.
Duterte made these allegations against Marcos during the Cebu People’s Indignation Rally held in Mandaue City last Saturday.
In a media statement, the BSP clarified, “The country’s gross international reserves (GIR), which include gold, are exclusively held and managed by the BSP to ensure the international stability and convertibility of the Philippine peso and to address any anticipated net demands for foreign currencies.”
The BSP emphasized that trading in gold reserves is a standard practice among central banks to mitigate the impact of declining market prices of other national assets and to secure sufficient funding for government projects and obligations during external crises.
It noted that the volume of gold reserves can fluctuate based on global market conditions. Additionally, it mentioned that storage costs may limit the amount of gold reserves held.
“The prices of gold typically move inversely to those of other assets. However, gold prices can be unpredictable, and since gold yields minimal interest and incurs storage costs, central banks prefer not to hold excessive amounts,” the BSP stated.
Gold holdings represent approximately 10 percent of the nation’s gross international reserves. In the first half of 2024, the BSP sold 25.95 tons of gold, resulting in a 15.69 percent reduction in its reserves to 134.06 tons.
The BSP indicated that it capitalized on the elevated global gold prices during this period, which exceeded $2,600 per ounce.#
