Czech National Bank Governor Aleš Michl has outlined plans aimed at improving returns on its foreign-currency reserves.
Over the next five years, he plans to:
- Increase the share of equity holdings in reserves to 30%
- Increase gold holdings from around 40 metric tons to 100
The bank intends to make gradual purchases of equities and gold rather than trying to time the market.
Michl emphasizes that the primary goal of the bank remains “price and financial stability.”
Information provided by a Bloomberg report (gated)
Insight:
By increasing the share of equity and gold holdings in its reserves, the Czech National Bank is aiming to diversify its portfolio and potentially increase returns in the long term. This strategy may help the bank mitigate risks associated with currency fluctuations and economic uncertainties.
