Written by The Banking Post
The value of gold and silver held by Bangladesh Bank (BB) has nearly doubled over the past fiscal year, largely due to a sharp rise in global gold prices and a weakening US dollar, the central bank revealed in its latest annual report.
At the end of June 2024, the total value of BB’s precious metal reserves stood at Tk 101.19 billion, up by more than 87% from Tk 53.94 billion recorded in FY2022–23.
According to the report, the increase was mainly driven by market valuation gains rather than significant additions to the reserves. BB’s gold holdings rose slightly to 458,542.34 troy ounces, an increase of 7,373.73 troy ounces from the previous fiscal year. In contrast, silver holdings remained unchanged for the second year in a row at 168,728.15 troy ounces.
Most Gold Held Overseas
The majority of the central bank’s gold reserves are kept in foreign institutions:
- 61% (282,463.42 ounces) are stored at the Bank of England, where they are also used in gold-lending operations.
- Over 20% are held with Standard Chartered Bank in London.
- The remaining 18% (83,339.85 ounces) are kept in BB’s own vaults in Bangladesh.
The silver stock, however, remains entirely stored within the country and is not currently part of any active investment strategy.
Rise Linked to Global Trends
A senior BB official, speaking on condition of anonymity, said the jump in valuation reflects a strong global gold market.
“The price of gold remained consistently high throughout 2024. This gain in value is entirely price-driven, not due to a major increase in quantity,” the official noted, adding that another revaluation gain is likely in FY2024–25.
Analysts say central banks around the world have been increasing their gold holdings amid growing uncertainty in the global economy and a decline in confidence in traditional reserve currencies. The US dollar’s recent depreciation—partly triggered by trade and tariff tensions under Donald Trump’s “reciprocal tariff” policies—has further fueled demand for gold as a hedge.
Throughout 2024, gold prices hovered near record levels, surpassing $2,400 per troy ounce at times.
