German Central Bank steps up repatriation
Duncan Richardson, News Editor
19 Jan 2015, 4:38 p.m.
The Bundesbank has confirmed it has stepped up the process of repatriating its gold stored in New York and Paris.
In 2014 the German Central Bank successfully repatriated 35 tonnes of gold from Paris and a further 85 tonnes from New York. According to the World Gold Councils latest figures Germany’s gold reserves of 3,384.2 tonnes are the second largest in the world. For historical reasons the majority of Germany’s gold is vaulted overseas.
Following Germany’s economic revival after World War Two the German Central Bank swapped the U.S. dollars they accumulated through trade for gold bullion vaulted in New York. It made sense to store the gold abroad as Germany was split between east and west and the Cold War was intensifying.
Many in Germany are now concerned that their gold has been leased out under a fractional gold system and are calling for all German gold to be repatriated. Under the Bundesbank repatriation program 674 tonnes are to be repatriated by 2020. Bundesbank executive Carl-Ludwig Thiele confirmed the repatriation process is on schedule and proceeding smoothly.