- Central banks bought a net 55t of gold in June following three straight months of selling
- The Central Bank of Türkiye's return to net buying in June helped the trend in central bank demand remain steadfast
Central banks return to net buying in June
Krishan Gopaul
Senior Analyst, EMEA World Gold Council
Source: IMF IFS, respective central banks, World Gold Council
*Data as of 30 June 2023 where available
Reported net purchases from central banks totalled 55t, the first month of sizeable global net buying since February.1
As in recent months, activity from the Central Bank of Türkiye (CBRT) was pivotal to the global total.2 Having been a significant net seller between March and May in order to meet local demand, it swung back to net buying in June, adding 11t to its official reserves.3 The CBRT’s total gold reserves stood at 440t at the end of June (29% of total reserves).
The bank’s activity underlined and clarified the continuing trend in central bank gold demand. Six central banks added gold during the month, with only two notable sellers. Among the buyers, the People’s Bank of China was the largest. It added 21t to its gold reserves during June, the eighth consecutive month of purchases. Since it began reporting increases in November 2022, gold reserves have grown by 165t (+8%), of which 103t has been bought in 2023, making it the largest buyer y-t-d.
The National Bank of Poland (NBP) was another large purchaser in June, increasing its gold reserves by 14t. This is the third consecutive month of buying from the bank, which last year indicated that it planned to add 100t to its gold reserves.4 The NBP has added 48t y-t-d, pushing its total gold holdings to 277t. Uzbekistan (8t), the Czech Republic (3t), Qatar (2t) and India (1t) were the other notable buyers in June.
At the time of writing, Kazakhstan and Singapore were the only significant (one tonne or more) sellers in June. Kazakhstan’s official gold reserves fell by 3t to 314t (56% of total reserves), with the bank indicating that more selling will likely occur before the end of the year.5 More frequent buying and selling from banks that obtain gold from domestic sources, such as Kazakhstan, is not uncommon. The Monetary Authority of Singapore reduced its gold reserves by 1t during the month.
To read more about central bank gold demand in H1 as a whole, please see our latest Gold Demand Trends report.6
Footnotes
1Based on monthly IMF IFS data and supplemented with data from respective central banks where available and not reported through the IMF at the time of publication. IMF IFS data is reported with a two-month lag, and while most institutions report on a regular basis, some may report with a – sometimes significant – delay. Figures may be subsequently revised as more data becomes available. The data used here informs but is distinct from the central bank demand estimates we report in Gold Demand Trends. Please see footnote 3 for more information.
2Türkiye official sector gold reserves are the sum of central bank-owned gold and Treasury gold holdings. This is equivalent to gross gold reserves less all gold held at the central bank in relation to commercial sector gold policies (such as the Reserve Option Mechanism (ROM), collateral, deposits and swaps). For information on this methodology, click here.
3For more, see: Turkey to suspend some gold imports after earthquake -Bloomberg News | Reuters
6For purposes of Gold Demand Trends, central bank demand is defined as net purchases (i.e. gross purchases less gross sales) by central banks and other official sector institutions, including supra national entities such as the IMF and sovereign wealth funds where applicable. Our quarterly central bank demand data is sourced from Metals Focus, whose proprietary estimates of official sector activity incorporate various sources, including IMF IFS reports, international trade data, and others. As such, IMF IFS data is a subset of what is included in Gold Demand Trends. Both data sets are subject to revision as new information is made available and/or to accommodate late or updated data reported by official institutions.
Central bank gold buying remains hot in July
Krishan Gopaul
Senior Analyst, EMEA World Gold Council- Central banks added 55t to global gold reserves in July
- China and Poland both added around 23t, while Turkey was again among the buyers
- Selling was limited but volumes were still notable
Having reported a return to net buying in June, the latest data shows global central banks continued to add to their gold reserves in July. Central banks reported healthy net purchases of 55t during the month.1 Despite the month-on-month slowdown – owing to the late reporting of a 30t purchase by the Central Bank of Libya in June – the latest data does seem to support our view that the longer-term buying trend remains in place.
Central banks remained net buyers in July*
*Data to 31 July 2023 where available.
Source: IMF IFS, respective central banks, World Gold Council
Looking at the detailed activity during July, two things are notable: 1) relatively few banks altered their gold holdings in July, and 2) many that did buy/sell did so sizeably.
The People’s Bank of China (PBoC) was once again the largest buyer, adding 23t during the month and cementing its place as the largest buyer year-to-date (126t). Since it began regularly reporting gold buying in November, the PBoC has bought a net 188t, lifting its total gold reserves to 2,136t (4% of total reserves). The National Bank of Poland (NBP) was a close second, increasing its gold reserves by 22t during July, boosting its total gold holdings to 299t. This is the fourth consecutive month of net buying, with purchases over this period totalling 71t – just 29t shy of the NBP’s stated aim of increasing its gold reserves by 100t.2
The Central Bank of Turkey was again among the buyers in July.3 Having flipped back to net purchases in June (11t), it added a further 17t in July. However, on a year-to-date basis the central bank remains a net seller (85t) owing to the heavy selling between March and May. Gold import quotas were reinstated in early August so it remains to be seen whether this will lead to renewed selling from the central bank should local gold demand remain elevated.4 Qatar (3t), Singapore (2t) and the Czech Republic (2t) also bought gold during the month.
In early August, it was also reported that Russia would recommence the buying of foreign currency and gold.5 However, scant information was available on the size or timing of any future gold purchases so we just need to watch the monthly data.
Buying and selling was limited in July, but volumes were sizeable*
*Data to 31 July 2023 where available.
Source: IMF IFS, respective central banks, World Gold Council
There were fewer sales than purchases in July, but volumes were still meaningful. The Central Bank of Uzbekistan (11t) and the National Bank of Kazakhstan (4t) were the two noteworthy and familiar sellers in the month. Further sales from central banks should not be discounted, especially from those that buy from domestic sources, such as the two above. In fact, the National Bank of Kazakhstan has been upfront on its plans to further reduce its gold reserves by the end of the year.6
Following the release of our latest Gold Demand Trends report, it’s undeniable that strength of central bank gold demand remains headline news. After recent heavy selling – largely from Turkey – monthly net purchases have re-established themselves in June and July. As such, we think this is a sector gold observers should continue to pay attention to.
Footnotes
1Based on monthly IMF IFS data and supplemented with data from respective central banks where available and not reported through the IMF at the time of publication. IMF IFS data is reported with a two-month lag, and while most institutions report on a regular basis, some may report with a – sometimes significant – delay. Figures may be subsequently revised as more data becomes available. The data used here informs but is distinct from the central bank demand estimates we report in Gold Demand Trends. Please see footnote 3 for more information.
3Turkey’s official sector gold reserves are the sum of central bank-owned gold and Treasury gold holdings. This is equivalent to gross gold reserves less all gold held at the central bank in relation to commercial sector gold policies (such as the Reserve Option Mechanism (ROM), collateral, deposits and swaps). For information on this methodology, click here.
4www.reuters.com/world/middle-east/turkey-plans-gold-import-quota-cut-ca-deficit-source-2023-08-07
Central bank demand still sizzling in August
Krishan Gopaul
Senior Analyst, EMEA World Gold Council- Central banks reported adding 77t of gold to global reserves in August
- China, Poland and Turkey were again buyers; no notable sales during the month
- As we head into Q4, central banks remain on course for a strong annual total.
Central banks collectively increased their gold reserves in August for the third consecutive month. They added – based on the reported data at the time of writing – 77t to global official reserves during the month, a 38% up-tick from July’s buying.1 Over the last three months, their combined net buying has totalled 219t, comfortably outweighing the combined net sales from April and May (96t).
Central banks post another month of strong gold buying in August*
*Data to 31 August 2023 where available.
Source: IMF IFS, respective central banks, World Gold Council
This recent buying suggests that we have now firmly moved past the net selling we saw in April and May, which was primarily driven by heavy, non-strategic selling from Turkey. We are therefore confident that the long-term trend of healthy central bank demand remains in place.
Buying, however, continues to be sizeable but limited to a small number of banks. The People’s Bank of China once again led the pack, adding a further 29t during the month. This brings its y-t-d net purchases to 155t, and its total buying since last November – when it began regularly reporting purchases – to 217t. As a result, gold holdings climbed to 2,165t at the end of August, accounting for just over 4% of total reserves.
The National Bank of Poland (NBP) also remained a significant buyer during the month. The NBP bought a further 18t, bringing its y-t-d net buying to 88t and a step closer to its previously stated 100t buying target.2 Its gold reserves now amount to 314t (11% of total reserves). Meanwhile, the Central Bank of Turkey added 15t to its gold reserves in August as it continues to rebuild its reserves following the sales mentioned above.3
The Central Bank of Uzbekistan (9t), the Reserve Bank of India (2t), the Czech National Bank (2t), Singapore (2t) and National Bank of the Kyrgyz Republic (1t), were the other buyers in the month. The Central Bank of Russia also reported a 3t increase in its gold reserves in August, taking its gold reserves back to where they started the year at 2,333 tonnes.
While reported sales were virtually non-existent in the month, Bloomberg reported claims that the Central Bank of Bolivia had “monetised” 17t of its gold reserves between May and August. This follows new legislation in May enabling the central bank to utilise its gold reserves.4 If confirmed, this would represent a 40% decline in its gold reserves (tonnage terms). Until confirmed, however, there is ambiguity in the use of “monetise” as this could mean several things, including, for example, outright sales or swap agreements. Currently, data on gold reserves at the Central Bank of Bolivia is not available after April, so we await more information.
Cumulative reported central bank demand by year since 2010 (red line: YTD 2023)*
Source: IMF IFS, respective central banks, World Gold Council
*Data to 31 August 2023 where available. Note: chart excludes China’s purchase of 604 tonnes of gold, which was announced in June 2015 and took place over a six-year period from 2009 to 2015. Chart also excludes Japan’s reported 81t increase in its gold reserves in March 2021, as this was the culmination of an off-market transaction between two different divisions within the Ministry of Finance, and swap activity from Argentina.
Suffice to say, central bank buying remains healthy. Even accounting for the net sales earlier in the year, the pace of buying so far this year suggests that we are on course for another strong annual total. We’ll cover overall central bank demand for Q3 and y-t-d in our next Gold Demand Trends report, which will be published at the end of October.
Footnotes
1Based on monthly IMF IFS data and supplemented with data from respective central banks where available and not reported through the IMF at the time of publication. IMF IFS data is reported with a two-month lag, and while most institutions report on a regular basis, some may report with a – sometimes significant – delay. Figures may be subsequently revised as more data becomes available. The data used here informs but is distinct from the central bank demand estimates we report in Gold Demand Trends. Please see footnote 3 for more information.
2www.biznes.interia.pl/gospodarka/news-adam-glapinski-prezes-nbp-bede-namawiac-rpp-do-kolejnej-podw,nId,5823037
3Turkey’s official sector gold reserves are the sum of central bank-owned gold and Treasury gold holdings. This is equivalent to gross gold reserves less all gold held at the central bank in relation to commercial sector gold policies (such as the Reserve Option Mechanism (ROM), collateral, deposits and swaps). For information on this methodology, click here.
4www.bloomberg.com/news/articles/2023-05-05/bolivian-senate-approves-general-terms-of-bill-to-monetize-gold
Central banks bought 77t in September
Krishan Gopaul
Senior Analyst, EMEA World Gold Council- Reported global central bank gold reserves, via the IMF and publicly available sources, rose by a net 77t in September
- Gross sales (1t) were dwarfed by gross purchases (78t), highlighting the strength of buying
Central banks bought a net 77t in September
Change by country
Central bank purchases in September 2023 were dominated by banks who have been regular buyers so far this year.
Major buyers were all from emerging markets. The People’s Bank of China added the most gold during the month (26t), followed by the National Bank of Poland and the Central Bank of Uzbekistan.
Note: Chart includes changes of a tonne or more only.
Changes year-to-date
The People’s Bank of China remains the largest gold purchaser in 2023.
Emerging market banks have been the driving force on both the purchases and sales side.
The Monetary Authority of Singapore remains the sole developed market bank adding gold to its reserves (the ECB addition was related to Croatia joining the eurozone in January).
Note: Change by country and changes year-to-date charts include changes of a tonne or more only.
Central Bank Gold Statistics - December 2023
Krishan Gopaul
Senior Analyst, EMEA World Gold CouncilDownload PDF:
Reported global central bank gold reserves, via the IMF and publicly available sources, rose by a net 28t in December. Higher gross sales (12t) were outweighed by gross purchases (41t), highlighting the continued strength of buying.*
*Totals may not sum due to rounding. Note: Change by country and 2023 changes charts include changes of a tonne or more only.
Central bank gold buying picks up in April
Krishan Gopaul
Senior Analyst, EMEA World Gold Council- Net purchases totalled 33t in April, rebounding from a revised net 3t in March
- Broad buying from several emerging market banks offset negligible sales
- June sees the release of findings from our Central Bank Gold Survey 2024.
The rapid rise in the gold price during March raised several questions. One of these was whether central banks – whose demand has been posited as a key reason for the recent rally – would change their gold buying behaviour in response.
We now have the benefit of a more complete picture for March, as well as initial data for April, to help inform our perspective. Latest figures – reported via the IMF and publicly available sources – show that global gold reserves rose by a net 33t in April, similar to levels seen in February (27t).1 Although gross purchases dipped to 36t, from 39t in March, gross sales saw a more pronounced m/m drop from 36t to just 3t in April.
Central bank net buying rebounds in April
Monthly central bank gross purchases and sales, tonnes*
*Data to 30 April 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council
Eight central banks increased their gold reserves by a tonne or more in April. The Central Bank of Turkey was the largest buyer, increasing its official reserves by 8t.2 With 11 consecutive months of buying, the bank’s y-t-d net purchases now total 38t and lift its total official gold holdings to 578t. The National Bank of Kazakhstan (6t), Reserve Bank of India (6t), National Bank of Poland (5t), Monetary Authority of Singapore (4t), Central Bank of Russia (3t) and Czech National Bank (2t) were the other major buyers in the month.
The People's Bank of China reported a significant slowdown in its gold buying. The bank reported that its gold reserves rose by just under 2t in April to 2,264t – the lowest monthly increase since it resumed reporting in November 2022 and well below the 18t monthly average prior to April.
Notable gross sales were limited to the Central Banks of Uzbekistan and Jordan. Both reported a 1t decline in their gold reserves, a notable reduction in the pace of selling seen in February and March.
Central bank gold demand remains healthy so far in 2024
Y-t-d net purchases/sales of a tonne or more by central bank*
*Data to 30 April 2024 where available.
Source: IMF IFS, respective central banks, World Gold Council
Looking back at March, net purchases for the month have been revised to just 3t following the late reporting of a 12t sale by the Central Bank of the Philippines. While gross purchases during March were relatively stable in the face of the rapidly rising gold price, gross sales saw a marked pick-up thanks to heavy sales from (now) four banks . This suggests that price performance may well have had some impact on the activity of some central banks.
Despite the slowdown in March, the preliminary pick-up in net purchases in April may suggest that central banks have thus far shaken off the rally in the gold price and continue with their strategic buying plans. Of course, more data for April, as it becomes available, as well as data for May, will be instructive to further assess how central banks’ approach to gold purchases will evolve. In addition, June sees the publication of findings from our Central Bank Gold Survey 2024, which will provide a rich insight into central banks’ thinking towards gold, and how this may influence gold buying going forward.
Footnotes
1 Based on monthly IMF IFS data (reported with a two-month lag) and supplemented with data from respective central banks where applicable. Most institutions report on a regular basis, but some may report with a – sometimes significant – delay. Late availability of data may lead to revisions. The data reported here informs, but is distinct from, the central bank demand estimates we report in Gold Demand Trends.
2 Turkey’s official sector gold reserves are the sum of central bank-owned gold and Treasury gold holdings. This is equivalent to gross gold reserves less all gold held at the central bank in relation to commercial sector gold policies (such as the Reserve Option Mechanism (ROM), collateral, deposits and swaps). For information on this methodology, click here.
Central bank gold statistics - March 2024
Krishan Gopaul
Senior Analyst, EMEA World Gold CouncilCentral banks reported 16t of net buying in March via the IMF and other public data sources.
Demand remained healthy: monthly gross purchases were steady m/m at 40t, partly offset by gross sales of 25t.*
March changes by country
March transactions were led by central banks who have been active recently.
Major buyers were all from emerging markets. The Central Bank of Turkey added the most gold during the month (14t), followed by the Reserve Bank of India and the People’s Bank of China.
**The 3t increase in gold reserves at the State Oil Fund of the Republic of Azerbaijan occurred over the period Jan-Mar 2024.
***This relates to an adjustment in reporting only gold with a purity of at least 995/1,000. This does not affect the amount of gold held as Net Foreign Assets and reported under BOT’s Financial Statements.
Year-to-date changes by country
Buying strength has continued into 2024, with emerging market banks the main driving force for both purchases and sales.
The Monetary Authority of Singapore remains the sole developed market bank adding gold to its reserves.
SOFAZ is notable as it is the only sovereign wealth fund which has reported increasing its gold holdings, by 3t y-t-d.
*Totals may not sum due to rounding. Excludes SOFAZ which only reports quarterly data.
Note: Change by country and YTD changes charts include changes of a tonne or more only.
Central banks bought net 44t of gold in November
Krishan Gopaul
Senior Analyst, EMEA World Gold Council- Reported global central bank gold reserves, via the IMF and publicly available sources, rose by a net 44t in November
- Gross purchases (60t) heavily outweighed gross sales (15t) as central bank demand maintained its momentum*
Central banks bought net 44t of gold in November
Change by country
Central bank purchases in November 2023 continued to be dominated by banks who have been regular buyers so far this year.
Major buyers were all from emerging markets. The Central Bank of Turkey added the most gold during the month (25t), followed by the National Bank of Poland and the People’s Bank of China.
Changes year to-date
- The People’s Bank of China remains the largest gold purchaser in 2023.
- Emerging market banks have been the driving force on both the purchases and sales side.
- The Monetary Authority of Singapore continues to be the sole developed market bank adding gold to its reserves (the ECB addition was related to Croatia joining the eurozone in January).
*Total may not sum due to rounding.
Note: Change by country and changes year-to-date charts include changes of a tonne or more only. Year-to-date change chart reflects updated gold holdings for the Central Bank of Iraq showing its gold reserves increased by over 12 tonnes between Jan-Oct 2023 (latest data available).
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