The National Bank of Poland (NBP) has amassed 700 tons of gold worth PLN 355.7 billion, central bank chief Adam Glapiński said Thursday. He added that he sees no reason to stop buying the metal.
At a news conference Thursday, Glapiński said the NBP had met its goal of holding 700 tons of gold in its reserves.
“This is a historic achievement for Poland’s central bank. The ambitious goal, adopted on my initiative, has been reached. (…) With this, Poland has cemented its position among the 10 countries with the largest gold holdings in the world,” Glapiński said.
He said that since the start of his term, the NBP’s gold holdings have grown nearly sevenfold, by 598 tons. The gold the central bank currently holds is worth PLN 355.7 billion.
“The so-called unrealized gain on gold is 140.5 billion. That is the difference between the value of this gold calculated at the price we bought it for and the current market price,” he explained. He cautioned that the current price of gold fluctuates, so the unrealized gain fluctuates as well.
In his view, gold strengthens Poland’s credibility and increases the country’s resilience to turmoil on international markets.
Glapiński added that, in his opinion, gold reserves should continue to grow, like other reserves. “I see no reason why we should stop buying gold,” he said.
He also stressed that, under a resolution of the bank’s board, the gold is ultimately to be stored one-third in New York, one-third in London and one-third at the National Bank of Poland.
“The problem with our vault is that we don’t have that one-third at the moment. These quick purchases are made in London, and that is where most of the gold is. We are finishing the so-called renovation, a magnificent reconstruction of the building on Plac Powstańców Warszawy, and there will be a state-of-the-art, enormous vault there. Then that one-third of our holdings will be there,” he said.
He also explained that the decision to spread out the holdings stems from prudence.
“We have lived through many wars, many different cataclysms, and it’s simply just in case. I believe the security of our gold in New York and in London is complete,” he stressed.
He added that gold protects Poland against the effects of extraordinary circumstances, such as a global financial crisis. He noted, however, that the main purpose of the purchases was to stabilize the złoty as an independent currency and to stabilize Poland’s status as a “stable, reliable partner.”
In mid-January, the board of the National Bank of Poland adopted a resolution setting a level of 700 tons of gold in the central bank’s reserves as a goal to be achieved. (PAP)
