Imagine a country that, in times of global economic turmoil, doesn’t panic but smartly buys gold like there’s no tomorrow! Yes, you read that right! The Governor of the National Bank of Serbia, Jorgovanka Tabaković, proudly states that Serbia currently holds a whopping 50.5 tons of gold in its reserves. And that’s not all – Serbia was among the top 10 countries buying the most gold for reserves in the first five months of this year, with an impressive 1.7 tons! While other countries are selling, Serbia is buying exclusively gold, with Germany being the only country selling. Genius or madness? You decide!
The gold buying is no accident. Tabaković emphasizes that gold is bought when you can, not when it’s too late, as a kind of insurance for tough times. Since the privatization of RTB Bor in 2018, the National Bank of Serbia has bought 19 tons of gold, with 17 tons purchased on foreign markets and 19 tons domestically. The 17 tons bought abroad cost about 700 million euros, but today that amount is worth a staggering 1.8 billion euros!
This smart and timely decision shows how Serbia doesn’t wait for events to push it but actively maintains the stability of its economy and the euro, despite geopolitical and domestic instabilities. Tabaković claims Serbia is currently a net buyer of foreign currency, compensating for sold currency worth 1.35 billion euros, and just today it’s in the plus by 55 million euros.
Imagine that – while other countries panic about exchange rates and interest, Serbia has its own strategy, and you don’t have to worry about how much your loan installment will be tomorrow or what will happen when you go to the exchange office.
Another interesting fact is that the National Bank of Serbia also bought gold from producers like RTB Bor during privatization, further strengthening reserves. Also, during the COVID pandemic, the state secured money delivered by plane from Austria, with banknotes clean and freshly printed, showing how much care is taken for stability and citizens’ trust.
The National Bank of Serbia has also developed its own payment system, independent of Visa and Mastercard, with its Dina card and IPS system working flawlessly for six years.
So, while the world shakes from economic crises, Serbia buys gold, strengthens reserves, and makes a difference. Is it wisdom or luck? Or maybe something in between?
If you have thoughts on this, or think Serbia should buy even more gold, or maybe this is too big a risk, feel free to drop a comment. Let the people’s voice be heard! Who knows, maybe your idea will be the next move of the National Bank!
