Sources say the Polish central bank intends to sell its gold reserves to fund defense programs.

PANews reported on March 5th that, according to sources, the governor of the Polish central bank has proposed raising up to 48 billion złoty (approximately $13 billion) through the sale of gold reserves to fund defense spending, a plan supported by the Polish president. Governor Adam Glapinski outlined the proposal during a meeting with the president on Wednesday. Glapinski informed the president that the Polish central bank could generate profits by reducing a portion of its approximately 550 tons of gold reserves, which could then be repurchased. Data shows that the Polish central bank has consistently been the world's largest publicly reported buyer of gold.

This financing initiative reportedly faces legal and political obstacles in Poland, as Polish law prohibits the central bank from directly funding the government. Therefore, sources say an alternative is to amend the law to allow the central bank to revalue its gold reserves to generate profits, and to draft legislation stipulating that these funds be specifically used for defense spending. It remains unclear whether the profits can be distributed within the year, which may require further legal changes.