Gold Rally Gives Argentina’s Meager Reserves an Unexpected Boost
- Central bank adds $1 billion to balance sheet as prices rise
- The country’s reserves have trickled away amid volatility
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Argentina added $1 billion in badly-needed foreign reserves thanks to an unexpected source: the recent gold rally.
After losing $4 billion from its net reserves since the beginning of the year amid political and economic volatility, an unusually large holding in gold has given Argentina’s central bank balance sheet a boost. Gold represents close to 9% of its total international reserves -- the largest proportion among main central banks in Latin America -- making it a winner from a 30% jump in prices of the precious metal this year.