Bundesbank to Repatriate Gold from Vaults in NY and Paris

By: EW News Desk Team

(Economy Watch)

Germany’s central bank will repatriate part of its $200 billion gold reserves stored in vaults in the United States and in France, according to reports by the German press.

According to Handelsblatt, a respected German publication, Germany's central bank plans to retrieve some 1,500 tonnes of gold stored in the vaults of the Federal Reserve in New York as well as its 450 tonnes of gold with the Bank of France in Paris.

The Bundesbank declined to comment on the report but will on Wednesday present a new management plan for Germany’s 270,000 gold bars, the world’s second-largest stockpile trailing only the United States.

The Bundesbank's overall gold reserves of 3,400 tons are worth about $200 billion at current market rates. Like most central banks, Germany stores part of its gold reserves in foreign vaults and approximately two-thirds of Germany’s gold have been stored abroad since the Cold War over fears of a Soviet invasion.

However, the Handelsblatt report comes months after Germany’s Federal Court of Auditors, which oversees the government’s financial management, called for the physical audit of the country’s foreign gold reserves, in accordance with commercial law, because its full value has never been verified.

Read more: http://www.economywatch.com/in-the-news/bundesbank-to-repatriate-gold-from-fed.16-01.html

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