January 2025 data:
The decline in imports is due to both capital and consumer goods. The jump in exports attributed to non-monetary gold.
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“Non-monetary gold” refers to gold that is traded for commercial purposes rather than held as official reserves by central banks or monetary authorities. It includes gold in the form of bars, bullion, powder, or unwrought gold that is bought and sold for investment, jewelry production, industrial use, or other non-central bank transactions.
This is distinct from “monetary gold,” which consists of gold owned by central banks or international financial institutions as part of their official reserves and is not included in trade statistics.
In economic data related to exports, non-monetary gold can be a significant component, especially for countries with strong mining industries like Australia, Canada, and South Africa, as it reflects private sector gold transactions rather than central bank activity.
This article was written by Eamonn Sheridan at www.forexlive.com.
