The Dutch central bank has relocated gold worth more than €10 billion from facilities in the United States and Canada to London amid concerns over rising geopolitical tensions.


The De Nederlandsche Bank (DNB) moved 86,000 kilograms of gold to the Bank of England in London to make its reserves easier to liquidate should a crisis arise, according to a statement published on September 2.


“Due to the increasing geopolitical instability, the DNB is working on improving its crisis readiness. Improving the marketability of Dutch gold, and with that how quickly it can be used in crisis situations, is a part of that,” the central bank said.


The Bank of England “is regarded as the world's most easily tradable gold and will therefore be the most readily available for DNB in a crisis situation,” DNB said.


Dutch media outlets reporting on the geopolitical concerns cited by the central bank have pointed to ongoing US military operations in and around Iran, which have contributed to higher global oil prices. They have also highlighted Washington’s continuing political tensions with Canada and Cuba, as well as recent US military operations in Caracas, Venezuela.


The Netherlands’ gold reserves currently total 612.4 tonnes, valued at €72.2 billion at the end of last year. Around 32 percent is stored in London, while 31 percent is held at the DNB Cash Centre in Zeist, near Utrecht, where the central bank has accumulated gold after moving it out of Amsterdam. Approximately 18.5 percent remains in New York, with a similar share held in Ottawa.


More than 27 tonnes of gold were physically transferred from North American facilities to the DNB Cash Centre in Zeist between March and August. During the same period, another 59 tonnes of gold held in New York was sold, while an equivalent amount was purchased in London. To maintain the geographical distribution without increasing the amount of gold held in the Netherlands, 27 tonnes were subsequently transferred from Zeist to London.


In February, New York held the largest share of Dutch gold reserves, accounting for 31.3 percent. Since then, approximately 78.39 tonnes of Dutch-owned gold have been removed from New York, while another 7.35 tonnes is no longer stored at the DNB’s facility in Ottawa.


By Nazrin Sadigova