Thursday, January 17, 2013

Germany Repatriating Gold From NY, Paris 'In Case Of A Currency Crisis'

Germany's central bank announced Wednesday it will repatriate gold reserves held at the New York Fed and the Banque de France in order to have "the ability to exchange gold for foreign currency [...] within a short space of time." Officials at the Bundesbank indicated they have no intention of selling gold, but acknowledged the move is "preemptive" in case a "currency crisis" hits the European Monetary Union. While they tried to minimize the importance of the move at the Bundesbank, repatriating gold is a clear indication of public loss of confidence on foreign central banks and the integrity of the monetary union. Over the past few years, Venezuela, Libya, and Iran have also repatriated their gold holdings.