The 90 tons of gold that the central bank of Mexico acquired during the first quarter of 2011 does not mean the nation lost confidence in the monetary system belonging to its northerly neighbor, according to the bank's top official.
Though the U.S. dollar is depreciating, the bank's governor said during a recent interview with Financial Times Germany that the euro also is weak and needs a boost. Agustin Carstens said the various euro zone nations struggling with public finance and debt issues must be addressed.
"It would help the euro's prospects if the problems in Greece, Portugal and Ireland were solved," Carstens said. "Only when they are solved can the confidence in the euro increase in the future."
At 9 a.m. on Monday, gold futures rose 0.81 percent, a $12.10 climb to $1,503.70 per troy ounce.
He emphasized the bank holds its dollar reserves in high regard, also noting the purchase of the gold had nothing to do with the dollar's value.
"A multi-polar currency system could develop in the very long term, but not in the coming years," Carsten said.
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