The Hungarian Central Bank increased its gold reserves by 3000% in 30 months. EUR? no thanks…
Hungary's central bank, Magyar Nemzeti Bank (MNB), has just announced a purchase of 63 tons of gold bars, and in doing so has tripled the nation's gold reserves from 31.5 to 94.5 tons in the year. 'span of the past two and a half years.
In its press release on the massive transaction, released on April 7, the Hungarian central bank explains its rationale for the dramatic purchase of some 5040 large (400 ounce) gold bars, noting that gold carries no risk. credit and no counterparty risk, and thus strengthens sovereign confidence in all economic environments (normal and extreme), while being one of the most crucial reserve assets a central bank can hold.
In fact, in October 2018 the MNB had bought 28.4 tons of gold, going from 3.1 to 31.5 tons owned, with an increase of 1000%, a move that came as a surprise, since we expected that Hungary converged towards the Euro and therefore counted, more than anything else, on the support of the ECB .. Now it has tripled it, in two and a half years we are at a thirtyfold increase.
This means that in exactly two and a half years, Hungarians have increased their sovereign gold reserves by a staggering 3000%, or 30 times, from 3.1 tons to 34.5 tons, and then to an absolute increase of 91.4. tons.
The 2018 purchase was made by the Bank of England with delivery of the precious metal. This time it was not known who the seller is, but the suspicion is that the same operation was repeated thirty months ago, with the purchase and delivery from another central bank, probably the British one.
Magyar Nemzeti Bank says part of the motivation for the new gold purchase is "managing new risks stemming from the coronavirus pandemic." A subtle way of saying that, since central banks and governments around the world have used the Covid excuse to raise debt levels, there is a global inflationary risk that the MNB thinks it can counter by increasing its stockpiles. 'gold. So these concerns, in the words of the Central Bank, “further increase the importance of gold in the national strategy as a safe haven and as a store of value”. Too bad it was precisely the flexibility of the day, which in 2 years went from 300 for one euro to 350 for one euro, that allowed the stable Hungarian economic growth.
However, one thing is certain: in Hungary's future there is no ECB or the euro, but a wise and strong monetary autonomy
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The article The Hungarian Central Bank increased its gold reserves by 3000% in 30 months. EUR? no thanks… it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-banca-centrale-ungherese-ha-aumentato-le-riserve-auree-del-3000-in-30-mesi-euro-no-grazie/ on Fri, 09 Apr 2021 14:50:44 +0000.