Bundesbank to bring back French, US gold by 2020
January 17, 2013, 12:03 am TWN
FRANKFURT--The German central bank or Bundesbank said on Wednesday it will relocate parts of its gold stored abroad following recent accusations that it was not keeping proper track of the vast reserves.
"The Bundesbank is planning a phased relocation of 300 tons of gold from New York to Frankfurt as well as an additional 374 tons from Paris to Frankfurt by 2020," the central bank said in statement.
"By 2020, the Bundesbank intends to store half of Germany's gold reserves in its own vaults in Germany," the statement continued.
"The other half will remain in storage at its partner central banks in New York and London."
On Dec. 31, 2011, Germany had 3,396 tons of gold valued at about 132.9 billion euros (US$176.4 billion), 31 percent of which is held in the Bundesbank's own vaults, with 45 percent deposited at the U.S. Federal Reserve, 13 percent at the Bank of England and 11 percent at the Bank of France.
By 2020, 50 percent would be held in Frankfurt, 37 percent in New York, 13 percent in London with no gold left in Paris, the Bundesbank said.
The new storage plan would enable the central bank to "focus on the two primary functions of the gold reserves: to build trust and confidence domestically, and the ability to exchange gold for foreign currencies at gold trading centers abroad within a short space of time," it explained.
The withdrawal of the reserves from the storage location in Paris "reflects the change in the framework conditions since the introduction of the euro," the statement said.