In July, Poland’s official reserve assets, managed by the National Bank of Poland (NBP), grew to €198 billion, reflecting a significant increase of over €2 billion compared to June. These reserves are primarily invested in government securities and bonds issued by international institutions and government agencies. Additionally, a portion is held in bank deposits with high credit ratings and in monetary gold.
Diversification and Stability
NBP’s investment strategy prioritizes liquidity, credibility, and stability while aiming to maximize returns. Recently, the NBP introduced a portfolio of Held-to-Maturity (HTM) bonds, representing about 8% of its holdings. The bank has also systematically increased its gold reserves and expanded its presence in corporate bond markets and equities to enhance returns without compromising stability.
Central to NBP’s strategy is its cautious approach to corporate bonds and equities, primarily through ETFs. By diversifying across major markets like the US and Europe, NBP minimizes issuer-specific risks while achieving better yields. This diversified investment strategy reflects the NBP’s commitment to balancing safety with higher returns.
The NBP plans to gradually increase its allocation to corporate bonds up to 5% and equities up to 15% of its reserves. These adjustments will be implemented gradually, with ongoing reporting to ensure transparency and alignment with the bank’s strategic goals.