National Bank of Poland Boosts Gold Reserves, Securing Second Place in Global “Golden Race”

The National Bank of Poland (NBP) has continued its upward trajectory in gold reserves, marking the eighth consecutive month of growth, as revealed by official data for November. The central bank, in its pursuit of financial stability, increased its gold holdings to 11,532 million ounces, maintaining Poland’s prominent position in the global arena as a significant player in the “golden race.”

In 2023, Poland emerged as a noteworthy participant in gold purchases worldwide, securing the second spot in the race, with only the People’s Bank of China ahead in this category. Notably, the NBP reported a substantial surge in bullion reserves in the first half of the year, acquiring 48.4 tons, though trailing behind China, which added 103 tons during the same period.

The streak of gold accumulation by the NBP commenced in April, witnessing a remarkable boost of nearly 15 tons. The trend continued with successive increases in May (almost 20 tons) and June (nearly 14 tons). July marked the pinnacle of this surge, with the central bank adding a substantial 22.4 tons to its vaults. August and September recorded increments of 15 and 19 tons, respectively, followed by a more modest addition of 6.2 tons in October.

This strategic move by the NBP follows its astute market timing in June 2019 when it acquired 100 tons of gold at approximately $1,350 per ounce. Last year, President Adam Glapiński announced plans for an additional 100-ton purchase, yet data obtained by Bankier.pl indicated that by the end of November 2022, NBP declared possession of 7.352 million ounces, slightly less than the previous year.

The NBP’s gold acquisition spree aligns with a global trend among central banks, as 2022 marked the largest collective gold purchases in at least 55 years. Central banks worldwide increased their reserves by 1,135.7 tonnes, reflecting a strategic move amid economic uncertainties. The National Bank of Poland’s commitment to reinforcing its gold reserves underscores the ongoing importance of precious metals in global economic strategies.

Implications for Banking and Business

Developments in the Polish banking sector affect businesses operating in the country in several ways. Access to corporate banking services, credit availability, deposit rates, and payment infrastructure are all critical factors for companies — whether established Polish firms or foreign-owned entities entering the market.

For foreign entrepreneurs setting up operations in Poland, choosing the right banking partner is a strategic decision. Major Polish banks including mBank, ING Bank Śląski, Bank Millennium, PKO BP, and Santander Poland offer varying levels of service for international clients, including English-language online banking, multicurrency accounts, and dedicated relationship managers for corporate clients.

The Polish banking market is well-regulated by the KNF (Financial Supervision Authority) and participates in the EU deposit guarantee scheme (BFG — Bank Guarantee Fund), providing deposit protection up to EUR 100,000 per depositor per institution. This regulatory framework provides stability and confidence for businesses maintaining corporate funds in Polish banks.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our personal income tax advisory, or contact us for a free consultation.