Strategic decision of the NBP. Increase in the amount of gold in Poland’s currency reserve
Gold does not cease to be a safe choice for banks around the world in restless times. Gold is perceived as a stable reserve of value, which does not depend on the financial systems.
The Board of the National Bank of Poland announced a decision to increase to 30 percent. the participation of the gold of official reserve assets. “The scale and pace of purchases will depend on market conditions,” the bank said in an official announcement.
Currently, Poland has over 515 tons of gold, with a value exceeding PLN 200 billion. This is about 22 percent. total foreign exchange reserves, which amount to over PLN 953 billion.
The NBP continues intensive shopping of gold
The president of the National Bank of Poland Adam Glapiński signaled the intention to further buy gold. He emphasized that gold is today the second most important asset in the balances of central banks in the world, and its value for financial stability increases with global uncertainty.
After the meeting of the Monetary Policy Council, the President of the NBP revealed that, as of September 3, the Central Bank had 515 tons and 300 kg of gold worth over PLN 204 billion (nearly $ 58 billion). As Adam Glapiński pointed out, Poland began intensive purchases of gold earlier than many other countries, “exposing itself to unjustified, political criticism.”
Central banks around the world are seeking gold
The gold reserves of central banks around the world have reached a total level of over 36,000 tons. This is the most in over 50 years, when golden parity was abandoned in world trade, introduced during a conference at Bretton Woods. According to the European Central Bank report, this is The invasion of Russia to Ukraine was an impulse for central banks to increase its gold reserves. Over the past three years, their participation in a global pol on gold has increased to 20 %, which is almost twice compared to the average of the last two decades.
The value of gold is not decreasing because its world resources are limited. With current technology, its extraction can only be enough for less than two decades. President Glapiński compared the global gold supply to a cube with a side of 21-22 meters, while annual production is a volume of a cube with a side of only 5.5 meters.
