Key facts
- The Dutch Central Bank moved approximately 86 metric tons of gold reserves, valued at $12 billion, from the US and Canada to London.
- The relocation was driven by concerns over increasing global geopolitical unrest.
- London now holds nearly a third of the Dutch gold reserves, enhancing their tradability and resilience.
- The move involved selling gold in New York and purchasing replacement gold in London, with some physical transport to the Netherlands.
- This follows similar actions by France, which moved its US gold holdings to Paris earlier in the year.
The Dutch Central Bank has moved approximately 86 metric tons of gold, valued at $12 billion, from its reserves held at the Federal Reserve Bank in New York and in Ottawa to London. This action, which occurred between March and August, represents more than a quarter of the gold previously held in North America and positions London to hold nearly a third of the Netherlands' total gold reserves.
Governor Olaf Sleijpen stated that the relocation aims to improve the tradability and resilience of the gold reserves, enhancing preparedness for potential crisis situations. London is recognized for hosting the world's most liquid gold market, making it an advantageous location for central banks to quickly buy, sell, or lend gold.
This move by the Netherlands follows a similar action by the French central bank earlier in the year, which sold its US gold holdings and replaced them with reserves in Paris. The Dutch central bank previously reduced its US gold reserves in 2014. The decision to move gold reserves has been discussed among German politicians, who have raised concerns about the prudence of keeping national reserves in the US under the current geopolitical climate and the unpredictability of U.S. policies.
The Dutch Central Bank executed the transfer by selling approximately 59 tons of gold in New York and purchasing an equivalent amount in London. Additionally, about 27 tons of gold were physically transported from North America to the Netherlands before being moved to London. Finance Minister Eelco Heinen noted that the preparations for this move were kept confidential due to its vital public interest.