Libyan president holds the No. 25 gold world
14:00 (GMT + 7) Wednesday, 03.23.2011 | 14:00 (GMT + 7)
While the international community is attacked by military authorities Gaddafi and frozen assets to cut all funding for the loyal forces, the Libyan leader is sitting on a mountain of gold.
According to the latest figures of the International Monetary Fund IMF, Central Bank of Libya under Gaddafi control holds nearly 144 tons of gold. Some of the information, said the exact number may be higher than several tons.
144 tons of gold with this, Libya is ranked number 25 among the country’s largest gold reserves in the world, worth over 6.5 billion dollars at the present time, sufficient to pay for a moderate forces in the several months or even years.
While central banks in many countries often gold reserves in London, New York or Switzerland, the Libyan back now hiding in their countries. Its people are also familiar with the exchange on the bullion market.
Although the U.S. and Europe have frozen billions of dollars of assets in Libya as a punishment, to influence the central bank and national oil companies, but still enough gold reserves to Gaddafi a way of life, if that can be sold. To sell at bargain prices, Colonel Gaddafi will certainly have to move the gold out of Libya.
Before the fighting took place, the gold is stored at the central bank in the capital Tripoli. Tuy However, since then, it can be moved to another location, such as the eastern city of Sebha, near the border with Niger and Chad.
The political instability in the Middle East, besides contributing to raising the gold price to a record $ 1,444 an ounce, also confirmed that the value of gold does not depend on a regime that holds it.
After the revolution in Egypt, the country banned the export of gold within four months to prevent government officials from the old transfer of assets abroad.
Meanwhile, Iran also quietly hoard of gold in recent years, rather than hoarding U.S. dollars to avoid the risk of being blocked in case of possible danger. These countries also have to hoard gold as China, Russia and India.
However, experts say, is not a bank or an international business who want to buy gold for a country engaged in hostilities, such as Libya, because they were not sure who would come forward delivery service.
However, Colonel Gaddafi can transfer gold to Chad or Niger, where they are converted into cash, deposited into a bank account owned by the Libyan Foreign Trade Bank, a branch of the Central Bank.
“If a country like Libya to yellow liquid, it can be done in the form of exchange, as weapons, food or cash” – Walter de Wet, an expert at Standard Bank said.
Besides its gold reserves, Colonel Gaddafi also built a number of cash from the sale of oil “illegally”, in addition to the traditional channels.
Vân Anh (Theo Financial Times)