Poland to boost gold reserves significantly

The governor of the National Bank of Poland (NBP) Adam Glapiński holding a bar of gold in the NBP's vault. (Source: NBP)
By Grzegorz Adamczyk
3 Min Read

The management of the National Bank of Poland has decided to increase the share of gold in its official reserve assets to 20 percent, announced Adam Glapiński, the head of NBP, at a press conference on Thursday.

“A 20 percent share of gold in reserves is characteristic of the wealthiest, safest, and most credible countries,” added Glapiński, explaining that the decision also means further purchases of gold by the NBP.

According to Glapiński, gold reserves are an important factor in the way an economy is perceived by both rating agencies and trading partners.

“We are solvent and trustworthy even in the most difficult political and military situations, and we’ll remain so. Anyone who trades with us, invests, or buys from us will be fully secure and can expect that their transaction will be secure,” Glapiński explained. 

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A third of NBP’s reserves are physically in Poland, another third are in the Federal Reserve in New York, and the final third are with the Bank of England in London. That three-way split will be continued as purchases of gold continue. 

NBP data shows that at the end of January, the value of the bank’s gold reserves amounted to over €21.72 billion, an increase over December’s figure of €21.53 billion.

Glapiński also provided positive estimates on inflation.

“Forecasts show that in the first months of this year, inflation will significantly decrease. It is decreasing and will decrease. At the moment, it is about 4 percent,” said Glapiński.

As the head of NBP emphasized, everything indicates that over the next three months, inflation will return to the NBP’s target, which is 2.5 percent (plus or minus one).

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“It may even happen that in March, it will be exactly or very close to 2.5 percent,” he assessed.

Glapiński stated that he intends to cooperate with the new ruling government.

“As the president of NBP, I strongly emphasize that I will cooperate with the new government and with any other government in the same good and constructive manner, in accordance with the NBP’s mandate specified in the constitution, the laws of the Republic of Poland, as well as in accordance with the provisions of the Treaty on the Functioning of the EU concerning central banks,” he noted.

“NBP will do nothing that could undermine this cooperation, within our mandate, while maintaining the full independence of NBP,” he declared. Glapiński explained that he needs to repeat this statement because false information about an alleged conflict with the government or the finance ministry constantly appears in the media.

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