International Reserves Up, Gold Reserves Value Down

According to the latest data from the National Bank of Hungary (MNB), Hungary’s international reserves rose above EUR 60 billion again in April, after foreign exchange holdings increased by more than EUR 2 billion. The reserve level strengthened following the decline in March. The value of gold reserves continues to react sensitively to movements in the global market price of the precious metal, writes the economic portal vg.hu.

In April, the country’s international reserves increased by EUR 1,897.8 million to EUR 60.630 billion, according to preliminary data from the central bank. The stock of foreign currency-denominated assets increased by EUR 2,026.1 million last month to EUR 44.389 billion, while the value of gold reserves decreased by EUR 111 million to EUR 13.978 billion.

However, foreign exchange reserves declined in March. According to the article, it seemed clear that the March plunge in the price of gold had left its mark on the development of the national bank’s foreign exchange reserves.

According to MNB data, foreign exchange reserves fell by EUR 1.132 billion, primarily due to a decrease in monetary gold reserves worth EUR 1.431 billion. Foreign exchange reserves fell from EUR 59.864 billion in February to EUR 58.732 billion, with gold reserves declining from EUR 15.520 billion to EUR 14.089 billion.

This was driven by the price of gold falling 11.8% in dollar terms in March: the spot price of gold plummeted from USD 5,235.85 at the end of February to USD 4,618.55 per ounce.

In 2024, the centennial year of its founding, the central bank decided to increase the gold reserves to 110 tons, taking into account Hungary’s long-term national and economic strategic goals. With this move, Hungary has surpassed Romania, which holds 103.6 tons of gold. Incidentally, this is the first time in modern history that Hungary has held larger gold reserves than Romania.