Rising geopolitical tensions lead Central Bank to increase gold purchases in Q2

In the second quarter of this year, the Central Bank increased gold purchases by almost 19%, according to a report on the money market.

Фото: Kun.uz

From April to June, there was a high demand for precious metals influenced by "external economic conditions and geopolitical conflicts." The average price of gold ranged from $2250 to $2350 per troy ounce.

The Central Bank increased its purchase of precious metals from local producers by 18.7% compared to the first quarter, reaching 26.4 trillion UZS ($2.1 billion).

However, the net volume of interventions in the foreign exchange market remained at the level of the previous quarter — 20.3 trillion UZS ($1.6 billion). The regulator emphasizes that foreign exchange interventions were carried out based on the principle of neutrality of gold and foreign exchange reserves.

The remaining additional liquidity resulting from the purchase of precious metals was covered by "other factors, including monetary operations and practices related to cash."