SEATTLE (Scrap Monster): The World Gold Council (WGC) published a new report that focuses on gold’s crisis performance. It highlights the case of Hungarian central bank which added significantly to its gold reserves in March this year, amidst prevailing crisis related to Covid-19 pandemic.
In a press release issued by the bank, it noted that the fresh risks arising from the pandemic along with inflationary concerns and gold’s lack of credit risk prompted it to boost its gold reserves. It must be noted that the Magyar Nemzeti Bank (MNB) has raised its gold holdings from 31.5 tons to 94.5 tons.
Hungary has moved from the middle of the international list to the top third by March this year, by tripling its gold holdings. Based on gold reserve size, it has moved from 56th position to 36th. The position within the Central and Eastern European (CEE) region has moved from 6 to 3. Currently, Hungary has the highest per capita gold reserve among all countries in the CEE region.
MNB’s decision to add gold to its holdings is a continuation of the move in 2018, when the country had decided to increase its gold reserves tenfold from levels of 3.1 tons to 31.5 tons, thus making its holdings at par with fellow CEE countries.