The news: The Netherlands’ central bank has shifted 86 tonnes of gold from North America to London in an effort to hedge against geopolitical unrest.
In a statement on Wednesday, the bank said it had made the decision to improve its “crisis preparedness” in the context of “increasing geopolitical unrest”.
It sold about 59 tonnes of gold in New York to purchase new stock in London, and transferred another 27 tonnes between the US, Canada and Zeist.
The share of its reserves held in New York fell from 31.3% to 18.5%, while the share held in London moved in the opposite direction. The amounts held in Zeist and Ottawa did not change significantly.
The context: De Nederlandsche Bank holds 612.4 tonnes of gold as a reserve asset to hedge against extreme systemic risks.
More than two-thirds of its gold is held abroad in London, New York and Canada. The decision reduces its North American reserves by almost a third.
The move comes months after the French central bank sold its US bullion and replaced it with local reserves, Bloomberg reported.
It also comes after Australia became the first major central bank to confirm it has reduced its US dollar holdings, as policymakers diversify away from an unpredictable White House.