In an effort to demonstrate the country’s strength and reduce its dependence on the US dollar, Poland’s central bank has revealed it intends to purchase at least 100 more tonnes of gold over the next several years.
In an interview with conservative magazine Sieci, governor of the National Bank of Poland Adam Glapinski announced that the central bank intends to continue expanding its bullion reserves, and buy an additional 100 tonnes of gold in the coming years— a price tag of over $5.5 billion at current gold prices. “This matters, among other things, for how the country is perceived,” he said.
Glapinski has been a strong supporter of boosting the country’s gold reserves, which have nearly doubled to 229 tonnes under his term. The institution has already purchased approximately 126 tonnes of bullion between 2018 and 2019, while also repatriating an additional 100 tonnes from the Bank of England. According to Glapinski, who is also making a bid for a second term, the central bank’s share of gold reserves will increase from the current 9% to at least 20% in the event that he is re-elected.
A number of central banks— especially those in Eastern Europe, Asia, and the Middle East, have been increasing their gold purchases as a means of reducing their reliance on other assets including the US dollar.
Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.