by Mike Maharrey
GoldSeek
The National Bank of Kazakhstan (NBK) recently announced plans to sell dollars to ease the inflationary pressure caused by its gold purchases.
The Kazakh central bank buys most of its gold from domestic production, growing its reserves without engaging in the world gold market.
Kazakhstan ranked sixth in the world in gold production in 2023. The central bank has a priority right to purchase gold from domestic gold miners. According to the Astana Times, the domestic gold purchases are set up “to boost international reserves and protect the economy from external shocks.”
The program has increased Kazakh official reserves to $45.8 billion, about half of that held in gold.
However, the gold purchase program has a downside. It leads to inflation.