Michl wants to restore national bank’s gold treasury
The Czech National Bank’s (CNB) gold reserves have dropped to 12 tons, about one-sixth of what they were 30 years ago. CNB Governor Aleš Michl discussed the issue and proposed restoring the bank’s treasury by increasing it to 100 tons of gold. This would involve purchases of more than 110 billion Czech crowns at today’s prices. The CNB board, including the two new members, could be in favor of achieving this goal.
The national bank currently has a money reserve of more than 3 trillion Czech koruna, thanks to a recent money printing. Last year, when Michl had just become governor, he was talking about increasing the gold reserve by only a hundred. As of today, there is talk of 200 tons: double that.
However, this decision is to be discussed in the bank’s new board of directors, which has two new members, who would seem to be more inclined to Michl’s idea, then to buy gold.
Sources: https://www.lidovky.cz/
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