Bundesbank faces pressure to bring gold reserves home amid Trump concerns

LONDON (May 30) Germany’s central bank is under growing pressure to consider repatriating its gold reserves from the United States, as Donald Trump’s return to the White House stokes concerns over the reliability of the Federal Reserve, according to Reuters.

Roughly one-third of Germany’s 3,352 tonnes of gold—the world’s second-largest national reserve—is stored at the Federal Reserve Bank of New York, a Cold War-era arrangement which also helped bolster U.S. ties. 

But with geopolitical dynamics shifting, that decision is reportedly facing renewed scrutiny.

“Trump wants to control the Fed, which would also mean controlling the German gold reserves in the U.S.,” Michael Jaeger, vice-president of Germany’s Taxpayers Federation, told Reuters. “It’s our money, it should be brought back.”

The organization has formally called on the Bundesbank and the Finance Ministry to repatriate the gold, said Reuters.

Markus Ferber, a member of the European Parliament from the ruling Christian Democrats, echoed those concerns, telling Reuters that “Trump is erratic and one cannot rule out that someday he will come up with creative ideas how to treat foreign gold reserves.”

The Bundesbank responded that it still considers the New York Fed “a trustworthy, reliable partner,” Reuters reported. However, the article notes that public broadcasters ZDF and ARD have recently raised questions about the safety of the U.S.-held reserves.

Germany previously repatriated 300 tonnes of gold between 2014 and 2017. But with new geopolitical uncertainties, Ferber believes the Bundesbank should now prioritize diversification.

Investing.com