The President of the National Bank of Poland (NBP), Adam Glapiński, revealed plans to dramatically boost Poland’s gold reserves over the coming years so as to secure Poland’s economic future in the face of geopolitical uncertainty.
Speaking at a press conference earlier today, Glapiński told reporters that the country was looking to aggressively increase its holdings of gold and foreign currency. “We will accumulate huge [amounts of] foreign currency and gold reserves as Poland must be ready for any eventuality - the NBP is prepared.”
Continuing, Glapiński described Poland’s gold purchases as being “unprecedented in history” before adding that even more would be bought in future.
The spending spree, he said, was directly linked to the war in Ukraine. “Poland’s economy could be threatened if an independent Ukraine is shaken, and if the front radically and rapidly moves towards the Dnieper,” he said. “This could create some economic uncertainty in our country.”
To counteract this, the NBP is set to boost the gold in its coffers. As of the end of March, the NBP held 11,532 million ounces of gold. At the end of March, gold amounted to 13% of the NBPs reserves. Now, however, it expects to increase this to 20% over the coming two years.
Glapiński also used the opportunity to tell journalists that monetary policy would not be eased. “We have to meet the inflation target,” he said. “We forecast that over the next few quarters it will rise, so now is not the moment to loosen our monetary policy.”
Asked when interest rates stood to be cut, Glapiński remained non-committal. “We can only act in accordance with incoming data,” he said.
Continuing, Glapiński described Poland’s gold purchases as being “unprecedented in history” before adding that even more would be bought in future.
The spending spree, he said, was directly linked to the war in Ukraine. “Poland’s economy could be threatened if an independent Ukraine is shaken, and if the front radically and rapidly moves towards the Dnieper,” he said. “This could create some economic uncertainty in our country.”
To counteract this, the NBP is set to boost the gold in its coffers. As of the end of March, the NBP held 11,532 million ounces of gold. At the end of March, gold amounted to 13% of the NBPs reserves. Now, however, it expects to increase this to 20% over the coming two years.
Glapiński also used the opportunity to tell journalists that monetary policy would not be eased. “We have to meet the inflation target,” he said. “We forecast that over the next few quarters it will rise, so now is not the moment to loosen our monetary policy.”
Asked when interest rates stood to be cut, Glapiński remained non-committal. “We can only act in accordance with incoming data,” he said.
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