In a controversial move, the Dutch central bank has confirmed that it has officially moved 86 tonnes of its gold reserves to London, UK from the United States and Canada. De Nederlandsche Bank (DNB), citing “increasing geopolitical unrest”, undertook a series of complex transactions between March and August 2026. The gold, valued at approximately $12 billion was previously held at the Federal Reserve bank of New York situated in Ottawa, Canada.
Decoding “increasing geopolitical unrest”
The central bank has historically refrained from making politically charged statements regarding national reserves. The recent change to this strategy can be attributed to the increasing vulnerability of American-held assets. Triggered by President Donald Trump’s tariff and trade measures, Canada and European Union have experienced a growing trust deficit. Fears that President Trump might leverage American-held foreign reserves to impose high tariffs on gold have been on the rise. Although President Trump has assured that gold bullion will not be subject to tariffs, the mistrust runs deep. The European confidence in New York as a safe haven has now shattered.
The strained trade relationship between Canada and the United States has also created a hostile regulatory environment in North America. The United States has recently imposed aggressive taxes on Canadian steel, aluminum, lumber, and vehicles. This has resulted in European politicians taxpayers increasingly pushing for repatriation of sovereign gold. In addition, the US-Iran war has also caused nations to become fearful of maritime shipping lanes being closed and potentially disrupting cross-border supply chains.
Logistics of Transport
To minimize risks associated with physical transport, the central bank sold 59 tonnes of gold in New York. An equivalent amount bullion was then purchased directly in London, this market swap reduced logistical challenges and the cost of transport. The remaining 27 tonnes was shipped across the Atlantic, without having to melt and restamp the gold bars. The details of transport were kept highly classified for security reasons.
The current balance of the Netherlands’ total gold is distributed across London, the Netherlands, New York & Ottawa in varying quantities. The share in New York & Ottawa has been reduced to 18.5% each.
The Netherlands is not alone in this move. The French central bank also moved 129 tonnes of gold from New York reserves. Other countries including Poland and Turkey, have also been moving gold assets away from reserves held in the United States. Financial analysts speculate that these moves could establish a risky precedent. If other European nations follow suit, global trust in the US financial system could weaken.
In response, the United States has maintained that sovereign nations are well within their rights to manage reserve locations as they see fit. This calm response is meant to counter the “American bank run” hysteria. The Federal Reserve Bank of New York has also cited on statements from other nations to de-escalate the situation. Germany’s central bank in a statement wrote, “The New York Fed is and remains an important storage site for our gold.”
