Poland’s strength has allowed it to “join the club” of strategic gold investors, the National Bank of Poland Risk Management Chief tells PolandIN.
"The macroeconomic environment is so good it has allowed us to invest in this extra strategic buffer,” Dr Juliusz Jabłecki told PolandIN’s David Kennedy.
Poland has doubled its gold reserves in less than two years, bringing the total percentage of its reserve assets held in the metal up to 10 percent, which is the average for reserve banks worldwide.
Dr Jabłecki would not be led on whether Poland increasing its gold position was a sign that ‘the lights might turn off” in either the Polish or the world economy.
“Our macroeconomic position is so good and our reserves have growth by about PLN 30 bn in about five years, so we've created ample space to increase this strategic buffer,” the risk expert explained.
Adam Glapiński, the NBP Chairman, however, has for months highlighted the possible effects for growth of a global slowdown during the monthly Monetary Policy Council meetings. In light of a possible interruption of international trade with China, tensions in Iran and a downturn in the UK economy if the country falls out of the EU without proper guarantees, some stable currencies may come under pressure in the next few quarters.
Gold has hit a high on markets on Friday, as the world faces up to Boris Johnson’s determination to deliver a hard Brexit on 31 October if there is no advance from the current statemate position. The “safe haven” aspect of gold, as Dr Jabłecki termed it, may still turn out to be an ace for the bank’s risk strategy.
Click here to watch the full interview.