By Daniel Namosuaia
Solomon Star
Honiara, Solomon Islands
Monday, March 31, 2014
http://www.solomonstarnews.com/news/business/23139-why-our-gold-bars-in-...
The Central Bank of the
Solomon Islands says investing the country's gold bars in Hong Kong is
important because of the closeness to buyers.
The bank was responding
to questions raised by the Malaita Ma'asina Forum (MMF) as to why the bank
has recently deposited its 31 gold bars in Hong Kong and not kept them in the
country.
The MMF said it does not
look right for a country like the Solomon Islands, whose economy and currency
are going down, to deposit its gold bars overseas.
"When we deposit these gold bars in Hong Kong, they are the ones
benefiting and not us here in the country," Charles Dausabea of the MMF
said. "It seems that this country has been remote-controlled by
foreigners. And the central bank and the government have to take action
against these foreign influences because it seems that what the government
and the bank are doing is not to benefit the people of this country."
But in response the central bank said Hong Kong is one of the major gold
depositories in the world and is well connected by international flights, and
hence Hong Kong's handling and shipment of physical gold are very efficient
and secure and meet international standards.
The bank added that Hong Kong is also centrally located and close to the
main gold markets in the region.
"The cost of bringing the gold from Hong Kong to the Solomon Islands
would be very high not only in terms of transportation but more importantly
in the substantial security cost in moving the gold from Hong Kong to
Honiara.
"Also, if in the future if we want to sell the gold to an overseas
buyer, and if the gold is held in Solomon Islands, it has to be transported
from Honiara to the buyer's nominated depository overseas, which could very
costly for us.
"So in view of the considerations above it was decided to keep the
gold bars in Hong Kong, where they were originally stored," the bank
said.
The bank said it has no intention of bringing the gold bars back to the
country because of the hefty transportation and security costs.
The bank said that at market prices last week the country's gold was worth
SBD$266 million (US$36.6 million).
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