Poland buys back 100 tonnes of gold from BoE

27 Nov 2019

Gold Poland has repatriated roughly 100 tonnes of gold from the Bank of England. 

The move arrives as a show of strength of the Polish economy, said the governor of Poland’s central bank Adam Glapinski, which is currently worth $586 billion.

During 2018-2019, roughly 126 tonnes of gold were bought back by the central lender in a bid to raise its gold reserves to 228.6 tonnes. This has led to Poland becoming the 22nd-largest bullion holder in the world, and the biggest holder of gold reserves in eastern European Union, said the central bank. 

Glapinski added that the institution will continue to bring the valuable metal back home as long as the “reserve situation is favourable.”

“The gold symbolizes the strength of the country,” said Glapinski, speaking to reporters on Monday. Poland currently has the potential of generating “multi-billion” profits if it sold its holdings, but Glapinski added that it has no intention of doing so any time soon. 

During the first six months of 2019, several central banks including those of Hungary and Serbia, hiked their gold reserves, pushing up global demand for the precious metal to a three-year high, said the World Gold Council. 

Amid waning economic growth, central banks have been increasing their reserves, in order to combat geopolitical and trade tensions, as officials look to diversify away from the greenback. 

As of October 31, 2019, Poland registered a whopping $121.9 billion in official reserves, including bullion.