The Dutch central bank has moved 86 tonnes of gold out of the United States and Canada to London, citing "increasing geopolitical unrest." De Nederlandsche Bank (DNB) said the operation, which ran from March to August, was meant to make its reserves easier to use in a crisis. The gold, worth billions of dollars, is now held at the Bank of England, where the metal can be traded more quickly than in New York or Ottawa.
A shift toward London
DNB holds about 313 tonnes of gold in total. After the move, the share stored in London rose from 18.1 percent to 32.1 percent, while 30.8 percent of the reserves remain inside the Netherlands at Zeist. The relocation was carried out partly through buying and selling and partly by physically moving the metal. More than 27 tonnes were shipped from North America to Zeist, and the same amount moved from Zeist to London, a swap that avoided the cost and risk of melting down gold bars.
Preparing for trouble
Bank president Olaf Sleijpen said gold held in London could be deployed fastest in an emergency. "With this step, we have improved the deployability of the gold reserves," he said. "We assume that we will never need to deploy the gold, but it is nevertheless necessary to strengthen our resilience and preparedness." The bank describes gold as an "anchor of trust" and a hedge against extreme systemic risks.
What is worrying central banks
DNB did not name a specific threat behind the move. The announcement comes as the United States' military conflict with Iran continues to shake global trade and energy markets. Canada, the other country that held part of the Dutch gold, has been hit by US tariffs on its steel, aluminum, lumber and automobiles, plus an additional 50 percent levy on about C$28 billion of Canadian goods announced in August. The relocation adds to a wider trend of central banks reviewing where they store their reserves as trade tensions spread.