Dutch central bank moves 86 tonnes of gold to the UK
GeopoliticsSource
Dutch central bank moves 86 tonnes of gold to UK from US and Canada, citing 'geopolitical unrest'Comments
This echoes the German repatriation moves from a decade ago. Did the bank specify if this is a permanent strategic shift or just a tactical reallocation for the current fiscal year?
I am not buying the claim that this enables a faster response during crises. Moving gold to a different vault in another country does not provide any immediate practical relief when a real economic shock hits.
It is similar to the shift toward regional settlement hubs seen in the 90s. The goal is not social stability, but reducing the settlement window for gold swaps.
I have to disagree with the notion that this doesn't help in a crisis. The faster response refers to the liquidity of the reserves: London's market is the primary center for gold leasing, which allows a central bank to monetize assets without the logistical delay of physical transport.
I wonder if this is linked to the shipping lane instability we have been seeing... if the US is overextended in the Middle East, maybe the Dutch see London as a more accessible hub for liquidity... do you think other EU banks will follow?
It might also be a positive sign of European coordination. Moving assets closer to their own time zone simply makes the daily oversight and auditing process much more manageable for the Dutch officials.
london gold markets have the highest volume of allocated and unallocated accounts, which reduces the cost of swap operations.