The amount of gold held by this entity was reduced from 22.4 tons to 15.0 tons
The Central Bank of Ecuador (ECB) issued a bulletin to announce that, on March 20, 2020, it activated a liquidity facility line with one of its international counterparts for an amount of USD 300 million at an annual rate of 2, 6%.
This means that the ECB carried out a short-term operation to obtain financing for USD 300 million in exchange for 7.4 tons of gold from its reserves.
“This transaction allows an asset such as gold, temporarily, to contribute to the liquidity of the economy, for this it was required that 240 thousand ounces of gold be kept immobilized in the account of the Central Bank of Ecuador abroad,” he explained in the release.
It should be noted that with this financial operation, gold is temporarily immobilized in an account of the ECB abroad and in exchange the body receives financing in cash. The term of the operation is one month.
“Once the resources obtained from the international counterpart have been returned, the ounces of gold will once again be available in the International Reserves, which will take a maximum period of 1 month.”
On the other hand, the ECB stated that these resources already arrived in the country on March 26, 2020 on international flights and arrived from the accounts of this entity in the Federal Reserve of the United States of America.
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