Vučić orders the National Bank of Serbia to buy gold
Serbian President Aleksandar Vucic violated the independence of the National Bank of Serbia (NBS) for the second time.
As a little over two years ago, the President of Serbia allegedly “ordered” the SNB to buy gold and, as he said, the idea would be discussed with top experts in the field. .
In October 2019, NBS had already bought 9 tonnes and, in November 2020, another 3 tonnes of gold following the president’s order. A few days ago, speaking of Kosovo and Metohija, Vucic referred to the economy and foreign exchange reserves, saying gold reserves would be increased to 50 tons.
At present, Serbia has 36.3 tons of gold in foreign exchange reserves, worth around $ 2.2 billion.
Of the approximately 14 billion euros of foreign exchange reserves managed by the National Bank of Serbia, around 7 billion are in blue chip securities, 5.3 billion euros in cash on deposit in foreign banks and around 1.7 billion euros. billion euros in gold.
In any case, the law and the regulations of the SNB make it clear who is responsible for what with regard to foreign exchange reserves. The SNB’s board of directors adopts the foreign exchange reserves management strategy, while the SNB’s executive committee manages reserves on the basis of documents and strategic guidelines, determining in detail how the reserves of foreign exchange are managed. exchange are managed, the types of assets and their allocation.
Nowhere is the President of the Republic mentioned as a person empowered to take such decisions. Yet two years ago, as well as a few days ago, he decided in what type of assets the Bank should invest state reserves.
Miladin Kovacevic, member of the SNB Council, points out that the organization has adopted a foreign exchange reserve management strategy, which stipulates that the SNB will decide for itself when and in what type of assets to invest.
This article is also available in: Italiano