Berita ini merupakan salah satu elemen yang akan membantu kenaikan harga emas bulan depan. Ini disebabkan ia masih dalam cadangan dan akan diputuskan dalam mesyuarat bank pusat mereka sedikit masa nanti. So ini bukan bermakna pembelian berlaku ketika ini bagi pihak Korea Selatan
Now, S Korea's central bank eyes gold
Published on: October 19, 2010 at 02:50
LONDON (Commodity Online): After India, Sri Lanka, Bangladesh and Nepal, now South Korea is planning to increase its gold reserves by shifting its currency reserves.
India, in November 2009, had bought 200 tonnes of gold from the IMF to improve its foreign reserves. Bangladesh, Nepal and Sri Lanka did the same this year.
Now it is the turn for South Korea, holder of the world's fifth-biggest foreign exchange reserves. Such a move could prove significant to the international gold market as Seoul currently only holds about 14 tonnes of the yellow metal, equal to just 0.2 per cent of its $290bn reserves at current prices. By contrast, Italy and France each hold just under 2,500 tonnes of gold, amounting to more than 65 per cent of their reserves.
South Korea's central bank stressed that any moves would have to be cautious and prudent because gold prices are touching record highs. Historically, Seoul has favoured Treasury bills over commodities because they are more liquid and can be used as a weapon to control the notoriously volatile won.
However, this reliance on the dollar, which makes up 63 per cent of reserves, has attracted widening criticism in recent years as commodity prices have soared. The rest of Seoul's reserves are in euros, sterling and yen.
Analysts feel that South Korea should have started building up gold stocks last year. Increasing its holdings now would be difficult.
Although gold prices have risen sharply in recent months, the upward trend is likely to continue for now as the dollar is likely to remain weak.
As one of the world's leading reserve holders and this year's president of the G20 leading economies, Seoul has advocated a system of global financial safety nets that might encourage many countries, South Korea included, to hold smaller reserves.
Many economists are sceptical that this proposal, which is steered by the International Monetary Fund, could help reduce reserves, which they argue are at a level far beyond what is needed to defend against financial shocks.
(Source: Financial Times)