Kazakhstan’s Central Bank Plans to Sell Gold as Holdings Hit 78% of Reserves
Kazakhstan's central bank has said it will begin selling off part of its gold reserves for the remainder of 2026, a shift that would turn one of the world's most active gold buyers into a net seller. The change was outlined by Aliya Moldabekova, Deputy Governor of the National Bank of Kazakhstan, in a recent interview.
Moldabekova said the bank's gold holdings have grown so large relative to its other reserves that they now resemble what she called a "single-asset portfolio." According to the bank's own estimate, gold now makes up approximately 78% of its total reserves, a level she described as uncomfortably high.
How the gold buildup happened
Kazakhstan has long held the right to purchase up to 100% of the gold mined within its borders, and the country ranks as the world's eighth-largest gold producer. The central bank stopped selling gold in February last year, allowing its holdings to climb to 386 tonnes. That steady accumulation, combined with other factors, pushed gold's share of total reserves to its current elevated level.
Separately, the World Gold Council's latest central bank gold update found that Kazakhstan was the fourth-largest sovereign gold buyer through the first eight months of 2026. The country added seven tonnes in August alone, bringing its year-to-date purchases to 36 tonnes. The WGC report put Kazakhstan's gold share at 79% of total reserves, or about 377 tonnes, a figure close to but not identical to the central bank's own 78% estimate.
Why the bank is rebalancing now
Moldabekova pointed to current Treasury yields, which she said are at multi-decade highs, as a key reason for the shift. "We haven't seen levels like this in a long time," she said, adding that the elevated yields make dollar-denominated assets more attractive and, by comparison, reduce the appeal of holding more gold.
The bank's foreign currency reserves total $66.4 billion, and Moldabekova emphasized that this pool of assets needs to stay liquid. Her stated goal is to bring gold's share of total reserves down by about 3 percentage points by the end of the year, from 78% toward a target near 75%.
The reduction will be split evenly between two methods, she said: half through outright sales of physical gold, and half through the sale of options. Notably, Moldabekova also said that if the price of gold were to fall below $4,000 per ounce, the reserve share could drift down to the 75% target without any additional action from the bank.
Despite the planned sales, Moldabekova was careful to note the bank isn't betting on falling gold prices. "Market forecasts indicate that the price of gold will continue to rise," she said. She added that the bank prefers not to plan too far into the future, saying it would rather reach the 75% level and then "continue to monitor the situation from there." She acknowledged ongoing uncertainty but said the bank still expects a slight rise in the price of gold.
Who this affects
This decision is specific to Kazakhstan's sovereign reserve management and does not set a mandatory path for other central banks or for individual investors. Still, moves by a major gold-buying nation can factor into broader sentiment around gold markets, which may be of interest to households who hold gold-related investments, retirement accounts with commodity exposure, or who simply follow precious metals prices out of general financial interest. As a personal finance writer who focuses on helping everyday households understand money, insurance and benefits news, I think stories like this are useful mainly as context rather than as a signal to act. Central bank reserve strategy and household financial planning operate on very different timelines and goals.
Readers who hold gold as part of a retirement account, investment portfolio or savings strategy may want to review how any market developments relate to their own goals. As always, a licensed financial professional can help translate broader market news into decisions that fit an individual household's circumstances.
Some central banks are also exploring blockchain technology to modernize how they settle cross-border payments and manage digital reserve assets.
Source: Kitco
Our last article on this: Strategy Makes Its Smallest Bitcoin Purchase of 2026
