In a move marking the most substantial accumulation since 2019, Poland’s central bank amassed 14.8 tonnes of gold in April, signaling the nation’s proactive response to economic uncertainties.
In a proactive financial strategy, Poland’s central bank procured an additional 14.8 tonnes of gold in April, marking the largest acquisition since June 2019, according to Kitco News.
As reported by Kitco News, quoting the National Bank of Poland, the nation’s gold reserves swelled to a total of 7.828 million fine troy ounces (approximately 243.5 metric tonnes) in the previous month, a considerable rise from 7.352 million. This uptick represents the largest since June 2019, a period that saw a remarkable growth of Poland’s reserves by 94.9 tonnes.
According to the report, the net worth of the country’s gold, comprising gold deposits and swapped gold, escalated to a substantial $15.52 billion in April, compared to the preceding value of $14.55 billion.
As referenced in Golubova’s article, this strategic acquisition aligns with the Bank’s Governor Adam Glapinski’s 2021 proclamation of Poland’s intent to bolster its gold reserves by 100 tonnes. The Governor emphasized the imperative of readiness for “the most unfavorable circumstances,” underscoring the need for a reliable value-retaining asset like gold in the country’s foreign exchange management process.
In the same report, Colin Hamilton, managing director at BMO Capital Markets, projected further purchases following this trend. Hamilton voiced expectations of robust central bank buying (+596t) this year, predicting it as a strong propeller for gold prices and market sentiment.
Golubova further reported that central bank gold purchases have significantly contributed to the surge in gold prices this year.
Data from the World Gold Council, as mentioned in the Kitco News article, highlighted other central banks that invested in gold in April, including the People’s Bank of China, the Czech National Bank, and the Central Bank of Mongolia, which bought 8.1 tonnes, 1.8 tonnes, and 1 tonne, respectively.
In contrast, Golubova reported that the Central Bank of Turkey offloaded a massive 80.8 tons of gold in April to cater to booming domestic demand. Despite leading the gold-purchasing race among central banks last year, Turkey pivoted to selling in March and April to fulfill burgeoning local demand, thereby mitigating the necessity to import gold, which was causing a strain on the country’s current account deficit.
As Golubova noted, the gold rush in Turkey can be attributed to the public’s pursuit of a safeguard against rampant inflation, which soared to over 85% at one point last year, and local currency devaluation.