It turns out that by buying 63 tons of the yellow precious metal at once, the Hungarian Central Bank was able to triple the state's gold reserves. After this purchase, Hungary's gold reserves increased from 31.5 to 94.5 tons. It is reported by the regional edition of the Budapest Business Journal.
The Hungarian Central Bank (officially called Magyar Nemzeti Bank) published an official statement in which it substantiated its decision to purchase such a large amount of gold: "The growth of the country's gold reserves takes into account the long-term and economic and political goals of the state."
The message goes on to say: “Overcoming the new risks posed by the worldwide spread of the coronavirus has also influenced the decision to buy gold for national reserves. Growing global risks against the backdrop of increasing debt burden increase the importance of gold in the national strategy as a protective asset and a means to support the national currency. "
The Hungarian Central Bank emphasizes the importance of owning gold in the current economic and political conditions. The presence of a sufficient amount of gold in reserves allows to strengthen confidence in the country's economy in all economic aspects.
It is worth recalling that the previous purchase of gold by the Hungarian Central Bank took place in October 2018. Even then, Hungary's gold reserves increased markedly: the purchase volume amounted to 28.4 tons. After that, the country's gold reserves amounted to 31.5 tons. At the same time, the share of the yellow precious metal in the total international reserves of the state amounted to 4.4% in January this year, but this figure should be updated soon.