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‘Not normal behavior’: De Nederlandsche Bank reallocates gold from U.S.
Fortune • • business
Key Points:
- The Dutch central bank (DNB) has not fully reallocated its North American gold reserves, with 18.5% of its 612 tons still held in New York and Ottawa, signaling cautious moves amid rising risk premiums in the U.S. Treasury market.
- UBS’s Paul Donovan highlighted that DNB’s effort to move gold out of New York is unusual and may reflect concerns about trust and the international reputation of the United States, despite no direct market impact.
- Similarly, the Banque de France sold 129 tons of gold held in New York and repurchased it in Europe, citing purity standards but indirectly raising questions about the risk profile of U.S. holdings.
- U.S. Treasury Secretary Scott Bessent’s recent interventions, including support for the yen and Treasury bond buybacks, aimed to stabilize financial markets and ease borrowing costs, benefiting one of the U.S.'s largest lenders.
