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Investing.com -- Bolivia’s state-run gold trading firm, Epcoro, plans to quadruple its purchases of gold this year. The move is aimed at bolstering reserves of the precious metal for the nation’s central bank, which is currently grappling with financial difficulties.
Epcoro has already procured a ton of gold this year from small-scale Bolivian producers. This amount contrasts with the total of 2.4 tons procured last year, according to the firm’s Chief Executive Officer, Pablo Cesar Perez.
Perez shared in an interview in La Paz that Epcoro projects to sell approximately 10 tons of gold to the central bank this year. Given the current global prices, which are hovering near record highs due to fears of persistently high inflation, this amount is valued at around $1 billion.
Epcoro was established a year ago in response to a crisis at the government-controlled central bank. The central bank has nearly exhausted its cash and gold reserves as it struggles to finance fuel subsidies. Earlier this week, the government announced that it could no longer afford to provide fuel subsidies for all, resulting in a reduction of support for miners and farmers.
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