In a significant move to strengthen its monetary reserves, the Czech National Bank (CNB) continued its gold-buying strategy last year, acquiring 20.5 tons of the precious metal. By year’s end, the bank’s gold holdings reached 1.645 million troy ounces, equivalent to 51.2 tons.
The central bank’s interest in gold has seen a dramatic increase over the past three years. From approximately 12 tons at the end of 2022, the bank purchased 18.7 tons in 2023 and further increased its acquisition pace in the following year, maintaining a steady purchasing rate of about five tons per quarter.
The value of CNB’s gold reserves hit $4.3 billion (103.66 billion Czech crowns) by December’s end, representing 2.9 percent of the bank’s total foreign exchange reserves. Governor Aleš Michl has set an ambitious target of reaching 100 tons by June 2028, when his term ends.
Historically, the CNB’s gold holdings have fluctuated significantly. The bank held its largest reserves of approximately 60 tons at its establishment in 1993, which later dropped to a low of eight tons in 2019. Currently, while a portion of the gold is stored in CNB facilities, the majority is kept overseas, including in the vaults of the Bank of England.
This strategic move comes amid a robust year for gold prices, which saw a 25% increase – the highest annual growth since 2010. By year-end, gold was trading at $2,600 (roughly 63,000 Czech crowns) per troy ounce on the London exchange. Experts attribute this price surge to extensive central bank purchases, declining interest rates, and heightened geopolitical tensions