Every Hungarian keeps 10 dekas of gold in the central bank – We are the first in the region in this regard

We are the first in the region in this regard

Photo: MNB

April 21, 2024
Compared to 2018, the country’s gold reserves have now increased thirtyfold – boasts the Magyar Nemzeti Bank (MNB). As it has been shown, the per capita gold reserve in our region is by far the highest in Hungary. Almost 10 deka of gold is available here for everyone. Of course, this is actually only owned by the MNB.

During the regime change, Hungary’s gold reserves were published on the MNB’s website article according to several steps, it decreased from 46 tons to 3.1 tons, and the stock remained unchanged until 2018. Breaking this trend, the MNB decided to significantly increase the gold reserve, tenfold its stock of 3.1 tons at the time. After that, it increased it further during the Covid epidemic, this time tripling Hungary’s gold reserves. In 2021, another 63 tons of gold were bought, so the size of the Hungarian gold reserve rose to 94.5 tons.

The total global demand for gold in 2023 was 4,899 tons, a new historical record. According to analysts and market players, purchases by central banks played a decisive role in the long-term rising exchange rate trend in recent years. Based on the data for the first quarter of 2024, this may still be the case.

As the MNB refers to, the central banks of the world tonnage was taken the gold. The central bank gold purchases, which will gain new momentum in 2021 and break decade-long records in 2022-2023, can primarily be linked to China, Turkey, India and Japan. According to the central bank article, in 2023 Poland also appeared on the market as a significant buyer, and the Czech Republic is also planning further purchases. The central banks’ gold demand rose in 2021 and 2022, reaching a historic high in 2022, when all purchases amounted to 1,082 tons. Last year, although no new record was set (1,037 tons), purchases by central banks were only 4 percent short of the previous year’s historical peak.

The Czechs and the Poles also bought tonnage

As the central bank article emphasizes: by expanding the gold reserve, the MNB was years ahead not only of the international trend, but also of the regional – Polish and Czech – central banks, which only announced their own purchase programs in 2023. The Poles bought 130 tons in 2023, and the Czech Republic aims to quintuple its gold reserves, within the framework of which the Czechs bought 19 tons of gold last year. Regardless of the Czech and Polish purchases, Hungary still holds the first place in the region in terms of gold reserves per capita.

Ranking according to per capita gold reserves in the region
	Country	Ounces/person
1.	Hungary	0.32
2.	Poland	0.3
3.	Bulgaria	0.2
4.	Serbia	0.2
5.	Slovakia	0.19
6.	Romania	0.17
7.	Latvia	0.12
8.	Czech Republic	0.10
9.	Lithuania	0.06
10.	Slovenia	0.05
11.	Ukraine	0.03
12.	Estonia	0
13.	Croatia	0
Source: MNB calculation based on the WGC, national statistical offices

Based on the published table, every citizen in Hungary holds almost 10 deka of gold in the central bank. This is, of course, a completely theoretical matter, since no one can have control over gold. The ratio is probably used by the central bank to demonstrate our first place. As the author of the quoted article summarizes, the MNB maintains the gold reserve based on national and economic strategic aspects, the stock of which has increased 30 times compared to the state before 2018, so “now a significant gold reserve strengthens the stability of the country, the perception of our economy and financial system”.