Why the National Bank of Kazakhstan is buying gold

Fri Dec 12 2025

The National Bank of Kazakhstan’s decision to ramp up large-scale gold purchases reflects broader global financial trends rather than domestic economic concerns, Kazakh economist and R-Finance financial adviser Arman Bayganov told News.Az.

Explaining the rationale behind the move, Bayganov said the policy is consistent with a global shift towards diversifying reserves. Many countries are increasing their gold holdings while gradually reducing exposure to the US dollar, he noted.

He added that geopolitical uncertainty has intensified following Donald Trump’s return to the White House, prompting states to reassess the security of their reserve assets. “Trump previously escalated trade wars, imposed tariffs and tightened trade conditions for many countries. These risks encourage states to reduce their holdings of American securities and diversify into alternative instruments,” he said.

Bayganov underscored that gold remains a traditional hedge against volatility, making it an attractive option for central banks seeking resilience amid instability.

He also highlighted Kazakhstan’s strong position in gold mining, noting that a significant share of domestically mined gold is purchased by the state to reinforce gold and foreign currency reserves.

“Globally, these reserves have grown by about 5–10 percent over the year, which is a very large increase for such a period,” he added.

Source: https://news.az/