Saturday, November 7, 2009

Sri Lanka is also Going for Gold Instead of Dollar

A few days ago, I wrote that India was buying a lot of gold instead of US dollar. Now, it seems that Sri Lanka is doing the same thing. There is some media speculation that Sri Lanka has purchased five tonnes of gold. This way, it is diversifying forex reserve. Economic recession in USA has made dollar weak and instable. So, central banks in India and Sri Lanka are perhaps thinking that Gold is more solid and stable. Sri Lanka will soon have a foreign exchange reserve of nearly $5 billion. It is a healthy amount compared to the size of the population. 

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