The National Bank of Poland added nearly 15 tons of gold to its reserves in April, according to data published by the bank last week. It was the largest increase in the country's reserves since June 2019 when the bank boosted reserves by almost 100 tons.
The purchase increased the value of Poland's gold reserves from $14.55 billion to $15.52 billion.
Poland's official gold holdings rank as the 22nd largest in the world. Gold makes up about 8.5% of the Bank of Poland's total reserves.
In the fall of 2021, Bank of Poland President Adam Glapi?ski said the central bank planned to add 100 tons of gold to its reserves in 2022. It's unclear why the bank didn't follow through. This recent purchase could signal the beginning of another round of buying to reach that 100-ton goal.
In 2021, Glapi?ski said holding gold was a matter of financial security and stability.
Gold will retain its value even when someone cuts off the power to the global financial system, destroying traditional assets based on electronic accounting records. Of course, we do not assume that this will happen. But as the saying goes – forewarned is always insured. And the central bank is required to be prepared for even the most unfavorable circumstances. That is why we see a special place for gold in our foreign exchange management process."
He went on to discuss some of the benefits of gold as a monetary asset.
After all, gold is free from credit risk and cannot be devalued by any country's economic policy. Besides, it is extremely durable, virtually indestructible."