In the first nine months of 2023, central banks around the world have intensified their interest in acquiring reserves of this coveted metal, with China and Russia leading the bullish trend. According to the World Gold Council, purchases of gold by central banks reached 800 tonnes net, an increase of 14% compared to the same period last year.

For 2024, projections indicate that central banks’ gold rush will persist for at least the first half of this year, according to data from Schiffgold.

This phenomenon is explained by two main factors. First, de-dollarization is expected to accelerate in 2024, with powers like China and Russia strategically moving away from the hegemony of the dollar. In Russia, the actions of the Biden administration to isolate Moscow with sanctions, stemming from the conflict in Ukraine, further push Russia’s disinvestment in the US dollar. It is therefore logical that Russia’s gold reserves will continue to grow in 2024.

Second, the Fed’s proclamation of a victory against inflation could further fuel interest in buying gold. The possibility that the Fed will be forced to cut interest rates in 2024, according to Schiffgold, leads central banks to seek easier protection against monetary policies.

In short, lower rates in 2024 reinforce the prospect of rising inflation, leading to a depreciation of the dollar and higher prices for gold and other commodities. Central banks, anticipating downward pressures on the dollar, are gearing up to strengthen their gold reserves, even as the Fed proclaims victory in the battle against inflation.

The question remains: A dollar crisis or a sovereign debt collapse? Central banks are not willing to wait to find out.

Finally, the year 2024 presents more uncertainty, with ongoing conflicts between the powers of the United States and presidential elections that amplify global political instability. Candidates like RFK Jr. and Vivek Ramaswamy advocate anti-system messages about central bank control, adding an element of intrigue to this complex picture.

K. Tovar

Source: Bancaynegocios

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Within the framework of the 7th plenary session of the Central Committee of the Communist Party of Cuba (PCC), concluded this Saturday in Havana, an ambitious macroeconomic stabilization program has been discussed and evaluated. This initiative aims to address the current monetary, financial and fiscal imbalances that have plunged the country into a deep crisis over the past three years.

The 15 new points proposed at this meeting, intended to be incorporated into the Economic and Social Policy Guidelines of the Party and the Revolution, include crucial measures to boost economic recovery. Among them is a “macroeconomic stabilization programme”, previously demanded by independent experts due to the deterioration of economic indicators.

The programme seeks to establish a monetary, exchange-rate, financial and fiscal environment conducive to economic recovery and growth, as well as the stability of the national currency and the reduction of inflation.

In addition, it has been proposed that the economy be effectively de-dollarized and that an exchange rate based on stable economic criteria be implemented. These measures seek to ensure that variables and prices are not administratively fixed, but reflect the real conditions of the economy.

In this context, the plenary also suggested the elimination of an earlier line advocating the continuation of the Ordinance Task, a set of reforms that sought to put an end to monetary duality and that has generated significant imbalances at the micro and macro levels.

Other recently proposed guidelines seek to reduce the monetary issuance associated with fiscal and quasi-fiscal activity, with the aim of combating inflation and the loss of purchasing power of wages and pensions. It should be noted that Cuba is about to close its fourth consecutive fiscal year with a deficit exceeding 10% of Gross Domestic Product (GDP).

K. Tovar

Source: Bancaynegocios

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This Thursday, during the BRICS meeting in South Africa on the occasion of the group’s fifteenth summit, the entry of new members was announced: Iran, Saudi Arabia, United Arab Emirates, Argentina, Egypt and Ethiopia.

The extension of the group was revealed by the president of South Africa, Cyril Ramaphosa, who has underlined the interest of other nations, such as Venezuela, Bolivia, Cuba and Honduras, to join countries that seek the use of another alternative currency to the US dollar.

In this sense, Ramaphosa “has commissioned the foreign affairs ministers to develop a list of possible new members for the next summit, for which Russia has offered to host”, according to the dpa agency. The list reaches 40 nations around the world, eager to be part of this group considered “inclusive” in monetary and financial matters.

The President of South Africa highlighted during the closing of the summit that the new members of the group will become official members as of January 1, 2024.

The welcome reactions from the authorities of those admitted by the BRICS have not been long in coming. Abiy Ahmed Ali, Ethiopia’s prime minister, has described the decision as a historic moment for his country. “Ethiopia is ready to cooperate with everyone for an inclusive and prosperous world order,” he stressed on the X social network.

M.Pino

With information from agencies, national and international media

(Reference image source: Ricardo Stuckert / Palacio Planalto / dpa)

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The president of Venezuela pointed out on Tuesday the importance and need to find an alternative currency to the dollar as a reserve system.

Maduro highlighted the current trend of many countries to break away from the US dollar, because the currency is used to apply sanctions to different nations.

The president referred to the yuan, China’s official currency, which has gained ground as an alternative to the dollar. He noted that the government could address “the countries that make up the BRICS (Brazil, Russia, India, China and South Africa) to seek alternatives.”

He added that he will “discuss the issue at the summit scheduled for August 22 in Johannesburg, as well as the implementation of cryptocurrencies.”

In Latin America, countries like Argentina and Brazil have already established agreements with China to use the yuan in their trade, instead of the dollar.

M.Pino

Source: beincrypto

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