The Polish central bank is considering selling part of its gold reserves to raise up to 48 billion złoty ($13 billion) for defense spending, according to sources. Governor Adam Glapinski presented the proposal to the Polish president, suggesting that profits could be generated by reducing the bank's 550 tons of gold reserves, with the possibility of repurchasing them later. This plan, however, faces legal challenges as current Polish law prohibits the central bank from directly funding the government.
To overcome these obstacles, there is a proposal to amend the law to allow the revaluation of gold reserves, enabling the generation of profits specifically for defense purposes. The timeline for distributing these profits remains uncertain, potentially requiring further legal adjustments. The Polish central bank is noted as the largest publicly reported buyer of gold globally, adding complexity to the proposed sale.
Polish Central Bank Proposes Gold Sale to Fund Defense
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