The calls reflect growing distrust in the neutrality of the US central bank.
JAKARTA – The governments of Germany and Italy are facing mounting pressure from their citizens to repatriate over USD 245 billion (around IDR 4,000 trillion) worth of gold that has been stored for decades at the Federal Reserve in New York.
As distrust deepens over the neutrality of the US central bank under President Donald Trump’s administration, the calls for returning the gold are growing louder in both European countries.
According to Mining.com on Wednesday (25/6), Germany and Italy—respectively the world’s second- and third-largest holders of gold reserves after the United States—store much of their precious metals abroad, primarily in the US.
Roughly 1,200 tonnes of Germany’s gold and 43% of Italy’s gold reserves are currently held in Manhattan, in vaults owned by the Fed.
However, the trust that was forged in the post-World War II era is now beginning to unravel.
Fabio De Masi, a former member of the European Parliament and now part of Germany’s new left-populist BSW party, asserted there is strong reason to return the gold to Frankfurt.
Similar sentiments were voiced by Michael Jäger, President of the Taxpayers Association of Europe (TAE), who stated: “Trump wants to control the Fed, and that also means Germany’s gold. That’s our money—it must be brought home.”
These concerns are not unfounded. Trump has publicly threatened to “force something” on the Fed if it does not lower interest rates.
Such political interference has led many to question the independence of the US monetary authority and, by extension, the safety of foreign gold stored under its custody.
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