Dutch Central Bank Shifts Gold Reserves from US and Canada to London
The Dutch central bank has shifted part of its gold reserves from the US and Canada to London due to geopolitical tensions. De Nederlandsche Bank (DNB) transferred approximately 86 tonnes of gold worth about $12 billion at current prices, citing heightened uncertainty caused by the US-Iran war.
The transfer took place between March and August this year, coinciding with a period of increased global unrest. DNB President Olaf Sleijpen stated that the move would improve the tradability and accessibility of its gold reserves in case they are needed during a crisis.
London was chosen as the new location for the Dutch central bank's gold due to its large and liquid over-the-counter gold market, where hundreds of billions of dollars worth of bullion change hands each week. The Bank of England is often used by central banks as a custodian because gold held there can be easily bought, sold, or lent to raise liquidity.