The Hungarian National Bank (MNB) has decided to raise the volume of monetary gold in its international reserves from 94.5 tonnes to 110 tonnes, the highest in Hungary's history, the central bank announced on September 30.

The decision was supported by strengthening global economic, geopolitical and capital market trends that have led to the appreciation of the role of gold in recent years. Amid increasing uncertainty in the global economy, gold has a heightened significance as a refuge asset and strengthens confidence in the country as well as supporting financial stability, the MNB said in a statement.

Central banks around the world have bought more than 1,000 tonnes of gold in recent years, which peaked at 1,082 tonnes in 2022, it added

The MNB, celebrating its 100th anniversary this year, has held gold reserves continuously since its foundation, which fell to 3.1 tonnes at the time of the regime change.

At the end of WWII, around 30 tonnes of bullion and coins were shipped to Austria on the infamous Gold Train.

The central bank and the pro-Nazi Hungarian government decided to ship these valuables westward to prevent the advancing Soviet army from capturing them. The train was filled with gold, jewellery, artwork and other precious items seized from Hungarian Jews.

The train was intercepted by American forces in Austria in May 1945. The contents were seized and, unfortunately, much of it was never returned to its rightful owners. This has been a source of controversy and legal disputes for decades.

The MNB began hoarding gold in 2018, marking the first purchase since 1986, when it boosted reserves from 3.1 tonnes to 31.5 tonnes, the highest level in seven decades. Three years later, the reserves rose to 94.5 tonnes. 

Hungary has the highest volume of gold reserves per capita in Central and Eastern Europe, at 0.37 ounces per person, they added.