The Bank of Portugal’s reserves were worth €45.140 billion at the end of 2025, an increase of €14.245 billion compared to 2024, following a year marked by the appreciation of this asset, which is considered a safe haven in times of uncertainty.

This development “was due to the combined effect of the rise in the price of gold in USD (+65.3%) and the depreciation of the USD against the euro (-13.1%)”, explains the BdP.

The central bank also notes that, as a result of interest rate movements, it continued to carry out gold-for-euro and gold-for-foreign-currency swaps, with the aim of maximising the return on this reserve asset.

A gold-for-euro swap functions as a borrowing arrangement, where an interest rate (the difference between the spot value and the forward value) is agreed and accrues over the life of the transaction, explains the BdP.