The National Bank of Romania says NO to gold repatriation exodus from GB. PLUS: More than half of the reserve is stored in London

Ioana Erdei 16/03/2018 | 09:24

The gold reserves of Romania, in total of 103.7 tons, are stored in three countries, according to the National Bank officials.  Central banks around the world have been building up their gold stockpiles to make sure they are stored on soil they can trust.

Two years ago, the institution announced that 60 percent of the gold reserves are stored abroad. Now the situation did not change, and 61 tons of the gold is stored in the Treasury of the National Bank of England, more than 40 tons of the gold is kept at the Bank of Romania in Bucharest and less then 5 tons are stored at the Bank of International Settlements in Basel, Switzerland.

The officials of the National Bank consider that keeping an important part of the gold reserve in London influences the country rating and boosts credibility for the financial Romanian market. The institution does not consider trading gold from the reserves in order to increase the amount, because there is the risk of loosing everything in case the investment bank handling the transactions goes bankrupt.

Also, the The National Bank doesn’t consider movind the reserve from Great Britain, after Brexit, considering the fact that London is one of the biggest financial centers of the world.

This week, the National Bank of Hungary (MNB) announced it is bringing back three tons of the country’s gold reserves stored at the Bank of England in London.

The move to repatriate 130 million dollars’ worth of gold from Budapest previously stored on British soil follows similar decisions made by Austrian, German and Dutch and Venezuelan central banks, which consider storing national gold reserves abroad a risky venture.

According to the international media, the decision to bring the gold home apparently reflects Hungarian Prime Minister Viktor Orban’s wish to have the country’s assets close to home rather than in the hands of a foreign country which does not necessarily have Hungary’s best interests at heart.

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