Central Bank of Ecuador gets $ 200 million more in exchange for gold
The Central Bank of Ecuador activated the liquidity credit line approved by a foreign bank (unspecified name) for $ 200 million to be paid in a one-month term with an annual rate of 1.44%.
For this activation, 200,000 troy ounces should be kept as restricted gold, which explains a reduction of $ 225.9 million in the gold balance and an increase of $ 200 million in the balance of investments, term deposits, and bonds, recorded in the Weekly Monetary Bulletin.
For José Hidalgo, from Cordes, this operation is a sign of the Government’s desperate need for liquidity.
According to the Central Bank, this operation is within the normal liquidity procedures, in order to meet the requirements of resources both inside and outside the country. (I)