The National Bank of Hungary (NBH) has repatriated the gold reserves back into Hungary, the NBH announced. About 100,000 ounces of gold, or about 3 tons, arrived in Budapest, amounting to EUR130m under current prices. The NBH management was in full agreement about the measure as it considered that actual possession of the gold reserves could further strengthen market confidence in Hungary. The repatriation of gold reserves was also in line with international trends, partly related to geopolitical risks, the NBH noted.
Hungary’s gold reserves amounted to 50 tons in 1989 but it was decided to be reduced to the minimum level, following the end of the Bretton Woods gold standard system, the NBH said. Gold reserves subsequently fell to 3 tons in 1992. The 2008 crisis forced a re-thinking of the gold reserves’ role not just as an investment product but also as a strategic tool to support confidence both domestically and abroad, the NBH stated. The decision to repatriate the gold reserves back into the country was fully in line with this new thinking, it pointed out.