Dutch central bank reallocates nearly 90 tonnes of gold from the US and Canada
The Central Bank of the Netherlands, De Nederlandsche Bank (DNB), announced the reallocation of nearly 90 tonnes of gold reserves from the United States and Canada. As The Jerusalem Post reports, the bank explained the decision by the need to strengthen crisis preparedness amid growing geopolitical instability.
DNB said it seeks to increase the liquidity of its gold reserves and balance their distribution between the United States, the United Kingdom and the Netherlands. Following the reallocation, the share of the bank's gold held in the US fell from 31% to 18.5%, while in Canada it decreased from 19.7% to 18.5%.
Zeist becomes the main storage location
The city of Zeist in the Netherlands has replaced New York as the main storage location for DNB's gold reserves: it now holds 30.8% of all the bank's gold bars. Overall, 63.9% of DNB's gold reserves are now concentrated in the Netherlands and the United Kingdom. Previously, the reserves were distributed approximately equally between Europe and America.
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DNB Governor Olaf Sleijpen said the move improved the ability to conduct transactions with gold reserves. According to him, the bank hopes never to use these holdings, but must strengthen its own resilience and preparedness for emergencies.
How the reallocation was carried out
DNB sold around 59 tonnes of gold in New York and purchased the same amount in London. Another 27 tonnes were physically transported from the United States and Canada to Zeist; at the same time, the same amount of gold was moved from Zeist to London.
The bank noted that the operations also made it possible to practise potential actions in the event of an emergency. In particular, DNB considers the sale and purchase of gold, as well as its physical transportation, to be options that may be needed under appropriate circumstances.
