Polish NBP starts investing in NZD in 2013, limits involvement in GBP

By bne IntelliNews May 30, 2014

The National Bank of Poland (NBP) started to invest in New Zealand’s currency (NZD) in 2013 in an attempt to broaden its diversification of foreign currencies, according to NBP's report. At the same time, it limited the share of assets in GBP by 3pps last year.

The main currencies used by NBP are: USD, EUR, GBP, AUD, NOK. The central bank stressed that it continues to invest the major part of Poland's foreign FX reserves in sovereign securities of countries with the highest ratings and highest levels of liquidity.

Its portfolio primarily includes securities issued by international institutions and government agencies, with a small part located in deposits at banks with high ratings and in US corporate bonds.

All in all, 86.0% of FX reserves were invested in sovereign securities in 2013 vs. 86.2% a year before.

The rate of return on FX reserves - calculated in PLN - amounted to minus 3.2% in 2013, which NBP attributed to the zloty's appreciation against all the currencies, except the euro.

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