Because central banks are the root of the modern money tree, they can use entries in their gold revaluation accounts to turn into capital, pay for expenses, or transfer it to their respective Treasuries. In addition, gold revaluation accounts can be used to cancel government bonds held on central bank balance sheets to lower the public debt.
The BNB reports an increase in the profit from the revaluation of gold, it is clear from the bank's report for the first six months of this year. The profit amounts to BGN 136,564 million and is the result of the increase in the market price of gold from BGN 3,323.11 per troy ounce as of December 31, 2022 to BGN 3,426.24 per troy ounce as of June 30, 2023, or an increase of 3.1 %.
Gold in standard form includes gold held for safekeeping and on deposit. The gold deposits were provided to banks whose liabilities were rated with one of the two highest ratings by two internationally recognized rating agencies, the report further stated.
Gold in other form includes commemorative gold coins worth BGN 48.947 million. "Other precious metals" include silver commemorative coins worth BGN 40 thousand and platinum commemorative coins worth BGN 2.144 million.
Hello,
I see that the Bulgarian National Bank has been reassessing the available gold for years.
My question to you is, is he doing it because of running out of liquidity and?
I am attaching a text from the Bulgarian media and a link to the BNB website with their reports.
https://www.bnb.bg/ResearchAndPublications/PubPeriodical/PubPSemiAnnualReport/index.htm#
The BNB reports an increase in the profit from the revaluation of gold, it is clear from the bank's report for the first six months of this year. The profit amounts to BGN 136,564 million and is the result of the increase in the market price of gold from BGN 3,323.11 per troy ounce as of December 31, 2022 to BGN 3,426.24 per troy ounce as of June 30, 2023, or an increase of 3.1 %.
Gold in standard form includes gold held for safekeeping and on deposit. The gold deposits were provided to banks whose liabilities were rated with one of the two highest ratings by two internationally recognized rating agencies, the report further stated.
Gold in other form includes commemorative gold coins worth BGN 48.947 million. "Other precious metals" include silver commemorative coins worth BGN 40 thousand and platinum commemorative coins worth BGN 2.144 million.
https://www.standartnews.com/biznes/udar-sas-zlatoto-golyama-novina-ot-bnb-545050.html
Best regards,
Mihail Mihailov