Central banks continued their strategic gold acquisitions in February, with global reserves increasing by 24 tonnes as Poland led purchases with a substantial 29-tonne addition to its national holdings, marking its 11th consecutive month of gold accumulation.
What to Know:
- Poland dominated February's central bank gold purchases, adding 29 tonnes to its reserves
- China, Turkey, Jordan, Czech Republic and Qatar all reported net gold purchases during the month
- Kazakhstan and Uzbekistan were the month's largest net sellers, reducing reserves by 8 and 12 tonnes respectively
Central Banks Maintain Strong Gold Buying Trend in February
The National Bank of Poland (NBP) has emerged as the most aggressive gold buyer among central banks this year, with February's 29-tonne acquisition pushing its year-to-date purchases to 32 tonnes. Poland's total gold holdings now stand at 480 tonnes, representing 20% of its total reserves.
This strategic accumulation reflects an ongoing trend among central banks seeking to diversify reserve assets amid global economic uncertainties.
China's central bank maintained its steady acquisition pattern, adding 5 tonnes in February. This marks the People's Bank of China's fourth consecutive month of net buying since it resumed reporting gold purchases in November 2024. The consistent pattern suggests a deliberate long-term strategy to increase gold's proportion within China's substantial foreign reserves.
Several mid-sized central banks also expanded their gold holdings during February. The Central Bank of the Republic of Turkey added 3 tonnes, bringing its gold reserves to 623 tonnes, which now constitutes 38% of its total reserves. Similarly, the Central Bank of Jordan increased its reserves by 3 tonnes, with gold now representing 30% of its total reserves at 72 tonnes.
Emerging Market Central Banks Lead Acquisition Trend
Qatar and the Czech Republic completed February's list of notable buyers. The Qatar Central Bank reported 2 tonnes of net buying, bringing its gold holdings to 114 tonnes, or 19% of total reserves. The Czech National Bank also added 2 tonnes, with its gold reserves now totaling 55 tonnes, equivalent to 3% of its total reserves.
Not all central banks increased their gold positions during the month. The National Bank of Kazakhstan reduced its gold reserves by 8 tonnes, while the Central Bank of Uzbekistan recorded the largest monthly reduction at 12 tonnes. Despite these sales, Kazakhstan's gold reserves remain substantial at 280 tonnes, representing 54% of its total reserves.
Both Kazakhstan and Uzbekistan lead year-to-date net selling, with each reducing their gold holdings by 4 tonnes since January. Market analysts note that these central banks have historically used gold as a liquidity management tool, occasionally selling reserves to address short-term financial needs while maintaining significant long-term gold positions.
The National Bank of Belgium addressed recent media speculation regarding potential monetization of the country's gold reserves. In a formal press release, the central bank reaffirmed its institutional independence and clarified that gold reserves constitute assets specifically allocated for achieving "public interest tasks entrusted to the Bank."
This statement comes amid reports suggesting Belgium might liquidate gold holdings to fund increased defense spending.
The bank's response underscores the strategic importance most central institutions place on maintaining gold reserves as a foundation of monetary stability rather than as a source for government expenditures.
Central banks in emerging markets have shown particular interest in gold acquisition over recent years, with Poland, China, Turkey and the Czech Republic emerging as consistent buyers. This trend reflects growing concerns about currency stability and geopolitical risks, driving institutions toward hard assets with historical value preservation characteristics.
Final Thoughts
February's central bank gold transactions demonstrate the continued strategic importance of gold within national reserve portfolios. While most major central banks increased their holdings, the contrasting approaches between net buyers like Poland and China versus selective sellers like Kazakhstan and Uzbekistan highlight the diverse roles gold plays within different national financial systems.