Central Banks Shift to Local Gold Purchases in Domestic Currencies

Central banks worldwide are increasingly sourcing Gold directly from small-scale domestic miners, paying in local currencies to reduce costs and support homegrown industries. The World Gold Council's latest report reveals 19 of 36 surveyed nations have adopted this strategy, with four more considering implementation by year-end.

This trend bypasses traditional foreign exchange markets, allowing central banks to bolster reserves without currency volatility. The Philippines and Ecuador pioneered the approach, now gaining traction across Africa, Asia, and South America. Domestic purchases eliminate millions in exchange rate losses while strengthening local mining sectors.

"The MOVE represents a quiet revolution in reserve management," said Shaokai Fan, Global Head of Central Banks at the World Gold Council. "Artisanal miners are becoming strategic partners in monetary stability." The 2025 report highlights how this decentralized procurement model reshapes gold's role in national economies.