Post #558

🔵Central Bank Goes for Obscure Schemes🔵 🌐 Bloomberg reports the Central Bank of the Democratic Republic of Congo plans to buy gold from a state‑owned company to bolster official reserves. DRC Gold Trading SA will be the partner of the Central Bank, providing gold from Congo’s hand-dug — or artisanal — mining sites. ⏩ However, it is not specified whether purchases will be settled in Congolese francs or in dollars — a critical difference for inflation, monetary control and who bears the cost. 🔴If the Central Bank pays in Congolese francs, this may endanger fiscal stability — triggering inflation that could leak into prices. But for the Congolese Central Bank it would almost the cheapest way to build up gold reserves, paying artisanal miners in currency it issues itself. 🔴If paid in dollars, inflation may be avoided — however, at the expense of the DRC's foreign currency reserves. ➡️Stay informed - @devilsbelow