Four thousand tons.
In terms of value.
It’s already over a trillion RMB. In other words, the gold extracted from the ground by Myanmar this year alone exceeds the GDP of most countries.
Really.
Unbelievable.
If a gold mine like this were discovered in Huaxia, wouldn’t that be amazing? If so, Huaxia’s gold reserves would soon surpass those of the United States.
Becoming number one globally.
At that ti.
The international confidence in RMB would be stronger.
Of course.
There are also drawbacks.
Currently.
The United States has been clamoring for the RMB to appreciate. Huaxia’s strategy, however, is stability, because rapid appreciation would greatly hurt exports.
Therefore.
Even if reserves truly exceed those of the United States, they would most likely be kept low-key.
"Alas!"
Sun Jiang sighed.
The rise of Huaxia is not easy. Every step must be taken cautiously, without being too hasty, and considering the massive scope, caution is necessary.
Seek speed while maintaining stability.
...
At this ti.
After Huaxia announced its gold reserves, and India was once again left speechless.
An acclaid Indian economist spoke on TV, stating, "India needs more gold reserves to maintain currency confidence."
"Suggestion."
"The authorities should massively repurchase local gold or buy it overseas, at least ensuring India’s gold reserves exceed two thousand tons, to cope with future risks."
"..."
Verbously, he spoke for over ten minutes.
In short.
---Collect gold.
Otherwise.
With the current Reserve Bank of India’s reserves, it’s absolutely impossible for the rupee to truly internationalize, which is believed to severely restrict the future developnt of the rupee.
anwhile.
He also proposed asures such as cracking down on counterfeit currency and maintaining rupee confidence, but the core point is still to increase Central Bank gold reserves.
Upon hearing this.
There was an enthusiastic response.
"This is a good idea, our local gold is the most in the world."
"Right, who can compare?"
"Buy."
"As long as we are willing, whose gold can compare to India’s?"
"Yes, indeed."
"..."
A large number of Indians feel this is the only asure to elevate the rupee. Having been humiliated previously, they are eager to turn the tables.
It should be noted.
India’s local gold is arguably the most globally, without parallel, even a twenty percent recovery would surpass Myanmar’s reserves.
This fact.
They are very confident about.
Hence.
Major Indian dia started reporting this thod, greatly touting the benefits. Even Indian authorities announced they are willing to repurchase gold at high prices.
However.
Reality is a bit harsh.
All thunder and no rain.
Counterfeit currency.
Depreciation.
These are the biggest obstacles to the rise of the rupee; people are more willing to store gold than cash. They may verbally support, but to bring out their own gold.
And exchange it for rupees that can depreciate at any ti?
Co on!
Do you take for a fool?
The gold price is rising, the rupee is depreciating, everyone knows how to choose, hence an interesting phenonon arose, with generous rhetoric all over the Indian internet.
Yet.
The official gold purchase locations were deserted.
...
Seeing this.
"..."
The Indian authorities were speechless, where is the promised sincerity? It’s all a sche, all talk no action, how can you do this, it’s infuriating.
In this way.
What talk is there of a rupee rise?
Hmph!
More like digging a pit.
However.
The authorities also know.
They bear half the responsibility for this, not to ntion, the large amount of counterfeit currency circulating in the Indian market is an undeniable responsibility of the authorities.
Crackdown?
Sure!
However.
The difficulty is too great because many involved in counterfeiting have deep backgrounds, and while India may seem unified from the outside, internally each state is like a small country.
The tax policies differ.
It’s a headache.
It seems.
They can only wait for the tide to pass, and everyone will carry on as usual, such impulsive words have appeared countless tis, often with great montum.
End result.
Shouted.
Shouted.
They just...got used to it, with no follow-up.
...
And just as countries had finished digesting Myanmar’s over three thousand tons of gold reserves, on November 25, Myanmar released another major announcent.
From now on.
The annual gold sale will be suspended.
It’s changed.
Early next month, the Myanmar Central Bank will issue the first batch of 300 billion Asia Dollar ’Gold Treasury Bonds’, the bonds are three-year term, with a promise of zero interest on the bonds.
Yes.
No interest will be paid upon maturity.
However.
Three years later, it can be exchanged for an equivalent amount of gold at the current market price or for an equivalent Asia Dollar at the maturity date’s gold price.
At the sa ti.
This batch of Gold Treasury Bonds can only be purchased with Asia Dollar.
Imdiately.
Global attention turned once again.
"What? Gold Treasury Bonds?"
"Interest-free?"
"This is the first ti I’ve seen interest-free treasury bonds; it’s like depositing in a bank without interest, but if exchangeable for gold at maturity, it’s quite different."
"Precisely."
"If the gold price goes up, the bonds will make a profit, if gold price reduces, the bonds will lose; it’s quite interesting, 300 billion equals over a thousand tons of gold."
"It seems the gold mining output from Myanmar isn’t enough. They want to delay, settle after three years, indeed, divine favor has its limits."
"Hmm hmm!"
"Good business!"
"..."
Many calculated and found it wouldn’t be much of a loss, even if gold prices fell, they could opt for tangible gold, as a natural currency, they are very confident.
If it falls.
It will eventually rise again.
If it rises.
Then it’s a profit, at worst they can receive gold settled at the current price.
Anyway.
The risk is controllable, thinking of this, a large number of central banks and investnt institutions contacted Myanmar, especially those central banks that previously bought gold.
Previously.
They had also purchased Myanmar’s treasury bonds.
After all.
A portion of foreign exchange reserves always gets sedinted and is temporarily unused. If not invested, they would just wait to see it depreciate, naturally, they would want to buy.
But not much.
This ti.
Looking at their Asia Dollar Foreign Exchange Reserves balance, many central banks are ready to buy all idle ’Gold Treasury Bonds’, the goal is not profit.
But to acquire gold.
Strictly speaking.
This behavior is the sa as previously buying gold from Myanmar, just with the settlent date placed three years later, the only difference being the gold is received a few years later.
No problem!
Buy.
Of course.
There are many central banks that want to buy but don’t have Asia Dollar, so they must find ways to exchange, Myanmar surely won’t, what difference does it make with collecting foreign currencies?
Therefore.
The only option is to exchange with other countries having a large Asia Dollar reserve.
Having a look.
The largest seems to be Huaxia.
Inquire.
Hmm.
A 1.5% exchange service charge isn’t too high, it’s equivalent to increasing the gold purchase price by only 1.5%.
Not much.
Exchange!
Many countries, convert their dollars, euros, or yens to Huaxia, for a profit of tens of billions made from lying down.
Why not do it?
Any more.
Won’t work, Huaxia also needs an Asia Dollar reserve. One could say, in just a week’s ti, hundreds of billions of Asia Dollars transferred from overseas accounts.
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