China’s neighbor Kyrgyzstan has been piling up gold reserves as a hedge against a possible trade war between Beijing and Washington.
The country is seeking to boost the share of gold in its $2-billion international reserves to 50 percent from its current 16 percent.
“The rules of the game are changing,” Kyrgyz Central Bank Governor Tolkunbek Abdygulov told Bloomberg in an interview. “It doesn’t matter what currencies we have in our reserves; dollars, yuan or rubles all make us vulnerable.”
The Kyrgyz currency, the som, slumped to a record low in 2015 following steep depreciation of the Russian ruble amid an oil crisis and stand-off with the West. Since then, the country boosted the share of gold in its reserves from 8 to 15 percent. -- Russia Today