The Dutch are moving gold out of the U.S.
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The Dutch central bank said this week that it was shifting about 86 tonnes of gold bars out of New York and Canada and moving them closer to home.
Why it matters: Countries are rethinking where they stash their gold reserves, as relations with the United States have frayed and geopolitical unrest has risen.
- The move comes at a time when the status of the U.S. at the center of the world financial system is in question.
- Foreign governments also now hold a much lower share of U.S. Treasury bonds.
Zoom in: The Dutch central bank doesn't mention any concerns with the U.S. in its press release. It said the move was meant to strengthen its crisis preparedness.
- "Improving the tradability of Dutch gold, and thereby how quickly the gold can be deployed in crisis situations, is part of this," the bank said in a statement.
- "At the same time, a more balanced distribution of the gold stock between North America, the United Kingdom and the Netherlands helps to spread risks."
By the numbers: Not all of the gold bars physically move across the ocean. 59 tonnes were sold in New York, and then the central bank repurchased the precious metal in London.
- More than 27 tonnes were physically moved to the Dutch vault in Zeist.
- Before the transfer, about 30% of the Dutch gold reserves were held in New York. Now it's about 18%. London's vault now holds about 30%, up from 18%, per the release.
Zoom out: Since the U.S. and its European allies froze about $300 billion in Russian central bank assets held abroad in 2022, there has been concern about holding reserve assets abroad.
- India last year brought more of its gold home. And the Financial Times reported last year on the growing call to bring gold closer to home in Germany and Italy.
- In a survey this year, 9% of central banks said they had increased the amount of gold stored at home over the previous 12 months, up from 5% a year earlier.
