Italy, Germany under pressure to repatriate $245bln in gold from US
3 Min Read
US President Donald Trump's attacks on the Federal Reserve and rising global risks fuel calls in Germany and Italy to bring $245 billion in gold reserves back from New York.
-
The Federal Reserve Bank of New York is visible in the Financial District in the Manhattan borough of New York City, on Friday, July 15, 2022 (AP)
Germany and Italy are facing renewed pressure to transfer their gold reserves out of New York amid growing concerns over President Donald Trump’s repeated attacks on the US Federal Reserve and escalating global instability.
Fabio De Masi, a former European Parliament member with Germany’s Left Party (Die Linke) who recently joined the left-wing populist BSW party, told the Financial Times there were “strong arguments” for relocating more gold to Europe or Germany “in turbulent times.”
Germany and Italy currently hold the world’s second- and third-largest national gold reserves after the United States, with holdings of 3,352 tonnes and 2,452 tonnes respectively, according to the World Gold Council.
Both countries rely heavily on the New York Federal Reserve as a custodian, with each storing over one-third of their reserves in the United States. According to FT estimates, the combined value of that bullion exceeds $245 billion.
This arrangement is rooted in historical precedent, but also reflects New York’s status as one of the world’s top gold trading hubs alongside London.
Europe bringing its gold back home?
Nonetheless, Trump’s unpredictable policymaking and broader geopolitical unrest are fueling renewed public debate in parts of Europe over the wisdom of storing sovereign gold abroad. Earlier this month, Trump warned he might be forced to “do something” if the US central bank did not lower interest rates.
The Taxpayers Association of Europe (TAE) has sent formal letters to the finance ministries and central banks of both Germany and Italy, urging officials to reconsider their reliance on the Federal Reserve for gold custody.
“We are very concerned about Trump tampering with the Federal Reserve Bank’s independence,” TAE president Michael Jäger told the Financial Times.
