Bought gold: Ecuador is significantly increasing reserves

The central bank of Ecuador has announced the purchase of 160,000 ounces of gold. The country’s gold reserves will increase by almost 30 percent.

The central bank of Ecuador announced yesterday that its gold reserves would increase by 160,000 ounces, the country’s media reported. This corresponds to 4.98 tons of gold. So far, Ecuador officially had 16.9 tons of monetary gold. The latest acquisition corresponds to an increase in gold holdings of 29.5 percent.

Veronica Artola, General Manager of Banco Central del Ecuador, said: “This process marks an institutional and national milestone as it not only increased the country’s foreign reserves, but also allowed the bank’s balance sheet to be re-composed, which is a positive message to the bank international community is broadcasting and further strengthening dollarization.

Background: In Ecuador, the former national currency Sucre was completely abandoned in favor of the US dollar. The US currency has been the official currency in the country since 2000. Ecuador has numerous smaller gold mines. Fruta del Norte is the name of the largest gold deposit in the country. It was once exploited by the Canadian mining company Kinross Gold and is now owned by their compatriots at Lundin Gold who operate the mine through its subsidiary Aurelian Rescources Inc.