Hungary's Gold Reserves Surge to 110 Tonnes, Reaching Regional High

Budapest, Hungary – The Magyar Nemzeti Bank (MNB), Hungary's central bank, has significantly increased its gold reserves to a record 110 tonnes, establishing the highest per capita gold holdings in Central and Eastern Europe. This strategic move, which began with the repatriation of reserves from London in 2018, aims to bolster financial stability and national sovereignty. The action aligns with a broader trend among central banks globally to increase and localize gold holdings.

The MNB initiated its gold strategy by repatriating 3.1 tonnes of gold from London to domestic vaults in March 2018. Later that year, in October 2018, the central bank dramatically increased its holdings tenfold to 31.5 tonnes. Further substantial increases followed, with reserves tripling to 94.5 tonnes in 2021 and reaching the current 110 tonnes in 2024.

According to the MNB, the decision to boost gold reserves and store them domestically is driven by long-term national and economic policy objectives. Gold is viewed as a "safe haven" asset that enhances confidence and acts as a crucial line of defense during extreme market conditions or geopolitical uncertainties. This approach echoes sentiments from other central banks globally, which are increasingly prioritizing physical gold within their own borders to mitigate third-party risks.

While Hungary has actively pursued gold repatriation and accumulation, claims regarding Italy's gold repatriation remain unconfirmed by recent official reports. Italian Prime Minister Giorgia Meloni has previously expressed support for gold repatriation, but recent reports indicate she has maintained a cautious stance on the issue to preserve international relations. The Bank of Italy continues to hold a significant portion of its gold reserves abroad, primarily with the Federal Reserve in New York, the Bank of England in London, and the Bank for International Settlements in Basel.

The tweet, posted by "Based Hungary 🇭🇺," stated, "> "Hungary and Italy have Repatriated their Gold Reserves. Both Nations have Declared Financial Sovereignty from the EU. Do you Support Meloni and Orbán? 🇮🇹🇭🇺" While Hungary's actions reflect a pursuit of financial independence, the concept of "financial sovereignty from the EU" is complex. Hungary, under Prime Minister Viktor Orbán, has frequently challenged EU policies, but its central bank's gold strategy is primarily an economic stability measure rather than a direct declaration of financial secession from the bloc. Italy, a founding member of the Eurozone, has not indicated any plans to declare financial sovereignty from the EU.