"World's Largest Gold Buyer" proposes to use reserves to fund and support national defense expansion plans

Latest news shows that the Governor of the Polish Central Bank proposed a plan to raise up to 48 billion zloty (about $13 billion) for defense spending by selling part of the country’s gold reserves. The plan reportedly has the support of the Polish president.

Sources familiar with the matter said that on Wednesday, March 4, Polish Central Bank Governor Adam Glapiński outlined this proposal during a meeting with President Andrzej Duda.

The sources indicated that Glapiński told the president that the Polish central bank could profit from selling part of its gold reserves and then buy back the gold later.

Another source mentioned an alternative plan to amend laws to allow the central bank to generate profits by revaluing its gold reserves, with these earnings designated for defense spending through legislation. It is unclear whether these profits could be allocated within the same year, which might require further legal adjustments.

Pawel Siewrak, head of the Polish President’s Office, stated that the value of gold purchased by the central bank from late 2023 to 2025 has increased by approximately 43 billion euros.

In recent years, the Polish central bank has been one of the world’s largest gold buyers. The World Gold Council reported that Poland’s National Bank increased its gold holdings by 102 tons by 2025, marking the second consecutive year as the world’s largest official gold buyer.

The report also noted that Poland’s gold reserves have grown to 550 tons, accounting for 28% of the country’s total foreign exchange reserves, nearing the target set last October to increase gold allocation from 20% to 30%.

Nevertheless, Glapiński stated in January that, for “national security reasons,” there are plans to further increase gold reserves to 700 tons.

One insider said that the central bank could also raise an additional 12 billion zloty from other sources, meaning that this year’s defense financing could reach as high as 60 billion zloty.

Previously, the European Commission announced a total financial support of 150 billion euros to member states for the procurement of security and defense equipment. Poland received the largest share, about 43.7 billion euros.

However, EU rules stipulate that most of the weapons purchased must come from the EU or EU partner countries to qualify for loans.

But Duda believes that advanced equipment like the F-35 fighter jets would benefit Poland and stated, “We can buy them through Poland’s own fundraising plans.”

Last week, the Polish central bank announced on social media that Glapiński met with U.S. Ambassador to Poland, Mark Brzezinski, to discuss “the growing role of gold in global central bank reserves.”

Zbigniew Boguć, director of the Polish President’s Office, said Wednesday evening that the country might finance itself through gold reserves over the next five years, but did not disclose specific operational mechanisms.

(Source: Cailian Press)