Imee Marcos Criticizes BSP’s Decision to Sell Gold Reserves Amid Global Gold-Buying Trend

Senator Imee Marcos has questioned the Bangko Sentral ng Pilipinas’ (BSP) recent decision to sell 24.95 tonnes of gold during the first half of 2024, a move she argued runs counter to the global trend of countries increasing their gold reserves. Speaking during Senate budget deliberations, Marcos expressed concern over the sale, pointing out that many nations are acquiring more gold rather than offloading it.

“Other countries are buying gold, so why are we suddenly selling ours when, as you said, we have enough funds?” Marcos asked.

Senator Grace Poe, representing the economic managers in the Senate, explained that the BSP took advantage of high gold prices to increase cash reserves without significantly impacting the country’s gross international reserves (GIR). While nearly 25 tonnes of gold were sold, the central bank also made additional gold purchases valued at around ₱16.7 billion.

Poe clarified that the sale helped boost the GIR, which reached $112 billion, the highest on record. She added that gold still comprises about 9% of the country’s GIR.

Marcos, however, argued that holding onto the gold reserves might have further strengthened the GIR, especially with recent gold prices hitting $2,754.27 per troy ounce. She urged the BSP to provide a detailed report on the selling strategy, including comparisons between sale prices and current market prices.

In September, the financial analysis site BestBrokers reported that the Philippines led gold sales among countries reporting to the World Gold Council in early 2024, selling nearly 25 tonnes and reducing reserves by 15.7%.

Poe and Marcos agreed on requesting a comprehensive written explanation from the BSP to clarify the decision, with Marcos concluding, “It’s a little peculiar… So many countries are acquiring gold, yet we’re unloading ours. We’ll await more information.”