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28 May 2015
Austria repatriation of Gold not due to Brexit talks – ECB’s Nowotny
FXStreet (Mumbai) - Austria’s central bank on Thursday said that it plans to repatriate some of its Gold reserves from Britain after facing criticism for storing too much of the precious metal abroad.
The decision to repatriate comes amid talks of Brexit. However, Governor Edwald Nowotny said the decision is “absolutely not” related to the possibility that Britain will leave the European Union (Brexit).
Instead, the Governor said the move reflects the trend among central banks, including Bundesbank, to repatriate gold to the home country.
The Austrian National Bank, which administers Austria's 280 tonnes of gold reserves, said by 2020 50 percent of the reserves would be kept in Austria, 30 percent in London and 20 percent in Switzerland. It currently keeps 80 percent of its gold reserves, which have been unchanged since 2007, in Britain, 17 percent in Austria and 3 percent in Switzerland.
The news has not had any impact on international Gold prices, which continue to trade in a tight range of USD 1188-1190/Oz.
The decision to repatriate comes amid talks of Brexit. However, Governor Edwald Nowotny said the decision is “absolutely not” related to the possibility that Britain will leave the European Union (Brexit).
Instead, the Governor said the move reflects the trend among central banks, including Bundesbank, to repatriate gold to the home country.
The Austrian National Bank, which administers Austria's 280 tonnes of gold reserves, said by 2020 50 percent of the reserves would be kept in Austria, 30 percent in London and 20 percent in Switzerland. It currently keeps 80 percent of its gold reserves, which have been unchanged since 2007, in Britain, 17 percent in Austria and 3 percent in Switzerland.
The news has not had any impact on international Gold prices, which continue to trade in a tight range of USD 1188-1190/Oz.