The Magyar Nemzeti Bank, MNBtaking into account the strategy of national policy and long-term economic of the Country, took a decision of historical importance in the context of its policy on gold reserves.
First of all, the central bank of Budapest has repatriated its gold reserves are kept in London back in march of 2018, and since then, it has increased the amount of precious metals in the state, going from a stock of just 3.1 to about 31.5 tonnes. It was the first purchase of ingots of the MNB, in the last thirty years.
The MNB considers that his reserve of bullion – physically stored within the borders of the country to serve not only as a line of defense in extreme market conditions, but also as an element that increases trust. Therefore, to Hungary as well as for every other country, owning gold is not only an investment but also a consideration of the economic strategy.
Looking back to the Hungarian history, the country has always had a special relationship with the gold. The Carpathian basin, rich veins gold, has been exploited since ancient times, and the Romans occupied these regions, even for gold.
Centuries later, in the middle Ages, Hungary was for three hundred years the largest producer of gold in Europe. At that time, Hungary was producing 25% gold and 20% silver in the world. At the continental level, from the mines of Bohemia came out 80% of the precious metal, around 2.5 tonnes per year and this leadership role lasted until the discovery of America.
Turning to the TWENTIETH century, since its establishment in 1924, the central Bank d’ Ungheria, he immediately made up of gold reserves and the maximum level was reached, with about 53 tons, before the Great Depression of 1929, remaining stable until the Second world war.
The most difficult moment in the history of the gold reserves of Hungarian has been experienced in the last months of the Second world war, when as many as 400 people were unable to save the national treasure from the occupation of the enemy. Was organized in the so-called “train of gold” that brought about 30 tonnes of gold bullion from 25 pounds and a stock of banknotes, to the value, at the time, of about a billion dollars.
The train left the capital, Budapest, November, 1944, and arrived in the austrian city of Spital am Pyhrn in January 1945, where the cargo was taken into custody by american troops of general George S. Patton.
After the war, in August 1946, ingots and money were returned, and those 30 tons of gold were one of the main pillars of the post-war period for the consolidation of economic and financial, and for the creation of the new Hungarian currency, the forint.
In seguitovi were decades of the total lack of transparency on the gold reserves in Hungarian, but after the political transition of 1989, things have changed and it is found, for example, that the stock of gold, the Hungarian vacillated for some time, between 70 and 80 tonnes, with the various stages of buying and selling on the basis of’ performance of the economy and prices.
Today, the Council head of the MNB continually monitor the gold market, and after the return of the reserves from abroad, with the outbreak of the pandemic Covid-19, even in the’ increased demand for the state due to the economic crisis and health care costs, determined not to yield any amount of ingots.
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