(Kitco News) After several large gold purchases by Poland and Hungary, the Central and Eastern Europe region now accounts for 17% of total global central bank gold purchases over the last three years, according to the World Gold Council.
“Decisions to purchase gold were strategic in nature, taking into account the rapid structural changes in the global economy, such as shifts in the international financial system and global consequences of the pandemic,” said Tatiana Fic, director of Central Banks and Public Policy at the World Gold Council.
In March, Hungary’s central bank tripled its gold reserves to a historic high of 94.5 tonnes. This comes after the country’s 10-fold increase in gold holdings in Q4 of 2018.
The next on WGC’s list is Poland, which also increased its gold holdings dramatically over the last three years.
The National Bank of Poland bought 25.7 tonnes in the second half of 2018, and then another 100 tonnes in the second quarter of 2019. The latter purchase is still the largest global single gold purchase of the last decade, noted Fic.