POST Online Media Lite Edition



 

Romania to bring home gold reserves from London

Christian Fernsby |
Romania’s parliament voted on April 24 to repatriate the country’s gold reserves, much of which are currently stored in the vaults of the Bank of England, in London.

Article continues below




Romania’s held gold reserves totalling 103.7 tonnes at the end of 2018, worth around 3.84 billion euros. As much as 65 per cent is held at the Bank of England. The new law stipulates that no more than five per cent can be held abroad.

Liviu Dragnea, the leader of Romania’s ruling party, the PSD, claims that storing the country’s abroad is no longer necessary. “Nothing about Romania’s current economic situation can justify keeping the gold abroad,” he said, adding that the fees paid to the Bank of England are “far from negligible”.

Opponents of the new law have claimed that repatriating the gold would endanger the government’s ability to borrow from external markets, especially in the case of a new recession. The physical repatriation of the gold to the country will also be a very costly process.


What to read next

Romania has not met European Commission's CVM targets
Dutch PM says no to Romania's Schengen accession
Europe opens investigation into gas export restrictions from Romania