Why did Egypt buy 44 tons of gold in one month?
Egypt’s central bank bought 44 tonnes of gold in February 2022,making it the world’s largest gold buyer in the first quarter of 2022.Why has it bought so much gold in one month? Economist Hani Abu Al-FutuhEgypt’s central bank says its gold reserves reached 125 tonnes at the end of February 2022.This is about 17% of the value of the foreign exchange reserves in Egypt.Abu al-Fatuh pointed out that “with the new deal,Egypt has become one of the countries in the region with the most gold assets.”Abu al-Fatuh said, “Why did Egypt buy 44 tons of gold?
There can be many reasons for this. First, central banks around the world have reduced their reliance on the US dollar over the years.Countries around the world are reducing their reliance on the dollar,given the questions that have been raised about the US economy and the future of the dollar.Dependence on gold is increasing.Gold is a metal that can be easily sold and countries,companies and institutions around the world depend on it.Abu al-Fatuh said that one of the reasons for buying so much gold could be that Egypt used gold instead of currency to import wheat from Russia.