The head of the Central Bank of the Czech Republic intends to increase national gold reserves 10 times

Under the leadership of Ales Michl, director of the Czech Central Bank, it is planned to increase the institution's gold reserves by almost 10 times - from the current 11 to 100 tons. In his opinion, the yellow metal is a great tool for diversification, because it does not correlate with stocks.

The bank's gold reserves can increase almost 10 times. The purchase of precious metal will be carried out gradually. The Czech bank decided to follow the example of other European banks. In 2018, the Hungarian Central Bank increased gold reserves 10 times, and the Bank of Poland had a similar increase in yellow metal reserves in 2019.

Michl also said that he would turn to the bank's foreign exchange reserve management team with a proposal to increase the share of Central Bank shares from the current 16% to 20% or more, similar to the policy of the central banks of Israel and Switzerland. Michl replied that he was not concerned about the potential risks associated with this use of reserve money because the expected revenue over time would be high. Michl added that his goal is to ensure that the expected return on the Bank's assets exceeds the value of its liabilities. According to the manager, the excess profit will be transferred to the state budget.