Poland’s international reserves contracted 2.1% m/m to PLN394.4bn (€94.5bn, $113.3bn) in December, data released by the National Bank of Poland (NBP) showed on January 5. In annual terms, Polish forex reserves fell 17.5% in the last month of 2017.
The monthly fall in December came on the back of reductions across all main segments. The monetary gold reserves fell 0.9% m/m to PLN14.9bn. SDRs fell 1.4% on the month to PLN1.49bn.
Poland’s reserve position in the IMF fell 5.3% m/m to PLN1.85bn. There was also a fall of 2.1% in the foreign exchange reserves segment to a total of PLN376.1bn. In euro and US dollars terms, the reserves also fell m/m in December.
The NBP invests foreign exchange reserves in standard instruments used by central banks. The majority of investments are in government securities, although some volumes are invested in securities issued by international institutions and government agencies. A small part of the foreign exchange reserves is held as deposits at highly rated banks abroad or in gold.