Lithuania’s gold reserves
We manage 5.8 tons of gold. This reserve had been accumulated in the interwar period and was recovered in 1993, after the restoration of Lithuania’s independence.
The pre-war gold holdings were returned to the Bank of Lithuania by the central banks of England and France, as well as the Bank for International Settlements, located in Switzerland. A pecuniary compensation was received for gold held in Sweden. The Bank of Lithuania’s gold is held in the Bank of England vaults in London. Gold investments not only cover gold storage costs, but also earn significant income. The amount and value of the gold reserves managed by the Bank of Lithuania are available on the Bank of Lithuania website.
Investment of gold
We generally invest gold in two ways: either gold deposits are conducted, thus earning interest, or through gold swaps, i.e. temporarily exchanging gold into other currencies, for example, US dollars or euro, and then investing it. The majority of profit earned by the Bank of Lithuania, including profit from gold reserves, is transferred to the State Budget to meet public needs.
Gold reserves and the Eurosystem
With the introduction of the euro in Lithuania, the Bank of Lithuania became the nineteenth central bank in the Eurosystem and a co-proprietor of the Eurosystem foreign reserve assets. The Bank of Lithuania transferred its contribution in gold, which it acquired in financial markets, maintaining the amount of the gold reserves under its management unchanged. On 1 January 2015, the Bank of Lithuania also signed the fourth Central Bank Gold Agreement, limiting the amount of gold that signatories can sell during a five-year period. After this period, the agreement is reviewed and updated. All euro area countries, the European Central Bank and other European banks are parties to this agreement.