While 2020 marked the eleventh consecutive year of central bank net purchases, it nonetheless finished on a somewhat uncertain note. A slowdown in the pace of purchasing by several banks in the second half of the year coincided with a sizeable pick-up in sales by others, causing overall central bank demand to swing between modest net purchases and sales. As I wrote in my last blog post on this topic, more data was needed to see how things might develop going forward.
Central banks continue to swing between net purchases and sales
Monthly central bank demand on a net basis