Bank of Mauritius turns to Australia to up gold reserves; govt plans gold fund launch
Mauritius will buy gold from Australia in an attempt to counter the impact of the depreciation of the Euro against the Rupee, on the export industries and tourism sectors. (Image: AFP)
The Bank of Mauritius is looking to grow its gold stockpile by purchasing additional tons from Australia`s Perth Mint to protect the currency of the country from extreme fluctuations, the island economy’s finance minister Seetanah Lutchmeenaraidoo, announced yesterday.
Lutchmeenaraidoo also added that the government is envisioning the launch of a Mauritius Gold Fund on the Stock Exchange which will be tax free for Mauritian investors.
Coming to the first development, the Mauritius Central Bank will buy gold from Australia in an attempt to counter the impact of the depreciation of the Euro against the Rupee, on the export industries and tourism sectors.
“Gold remains an essential insurance policy in the present economic context where currencies are extremely volatile,” Lutchmeenaraidoo explained to reporters present at the IMF forum which was held in Balaclava to the north of the island.
Given that the Finance Minister did not reveal the amount of gold and cost involved in the transaction with Perth Mint, it is difficult to make an estimate on the country`s gold holdings following the purchase.
It may be noted that back in 2009, the International Monetary Fund already sold two tons of gold for an amount of $72 million to Mauritius.