Poland’s central bank says it will add 100 tonnes of gold to existing holdings by 2022 – Bitcoin News

The Central Bank of Poland, the National Bank of Poland (NBP), plans to increase its gold reserves by 100 tons by 2022. . ”

Gold’s Safe Haven status

In an interview with the Gazeta Wroclawska newspaper, Glapinski explained why the NBP chose to increase its gold holdings. He said:

Why does the central bank own gold? Because in the global financial system, even if someone cuts off electricity, gold will retain its value.

Glapinsky added that while the central bank does not assume that this will happen, it is necessary to be prepared for such a scenario. The report quoted the governor as explaining why gold’s reputation (as an asset that increases in value during times of increased risk and financial and political crisis) is an important feature for the NBP.

Gold as a hedge against dollar fluctuations

Finally, according to the governor, gold is also seen as a good hedge against the fluctuations of the US dollar. Glapinsky explained:

“Gold has a relatively low correlation with the core asset class – especially the US dollar dominating the NBP reserve portfolio – which means that including gold in reserves reduces financial risk in their investment process.”

Meanwhile, the report reveals that the NBP is planning to win gold in mid-2022 when Glapinski expects to be re-elected governor.

Do you agree that the inclusion of gold in the reserve portfolio will reduce the financial risk for the Polish central bank?

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