Gold savings accounts as part of forthcoming Budget plans| MENAFN.COM

Saturday, 02 July 2022 03:17 GMT

Gold savings accounts as part of forthcoming Budget plans


(MENAFN) According to banking and trade sources, the government may declare gold savings accounts in the forthcoming Budget as a way to prevent the purchase of the metal in its physical version, as it strives to reduce the nation's currently increasing account deficit.

According to the sources, clients can open such gold accounts in banks and deposit money regularly. They further stated that they can retrieve their deposits at any time depending on the current gold price. Thus, the demand for actual gold as an asset is forecasted to drop as a result of this.

Much like sovereign gold bond (SGB), it's expected that gold savings are going to collect interest. SGB has a yearly interest rate of 2.5 percent. Consequently, a legislative system for digital gold may also be developed by the government.

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