In addition to the regulator’s prudent monetary policy and floating exchange rate of the national currency, the country's gold reserves also benefited from the portfolio reorientation in favor of gold. If, as of end of January 2013, assets in foreign currency made the main share in the national reserve structure, and gold accounted for only 23.3%, now the situation is just the opposite.
Thus, as of end of January 2022, the share of gold in the international reserves of the Republic of Kazakhstan amounted to 66.4%. Gold is a strategic asset during a crisis. As a saving instrument and protection against systemic risk, currency depreciation and inflation, gold has historically improved risk-adjusted portfolio returns and provided liquidity to cover liabilities during periods of market stress.
Thanks to the active purchase of gold over the past 10 years, Kazakhstan has stepped up to 15th place in the world ranking in terms of gold volume in GFR, and excluding IMF and ECB, the country ranks 13th, surpassing Portugal. GFR of the Republic of Kazakhstan has 385.3 tons of gold at present, and the main volume has been acquired over the past 10 years. Thus, for the period 2012-2021, the gross purchase of gold by the National Bank has amounted to 320.4 tons. The maximum purchase volume of 50.6 tons was observed in 2018.
Photos are from open sources.
