Tuesday, January 15th 12:51 PM IST

Bundesbank develops new concept to bring back German Gold

# Bundesbank  # Germany gold reserves  # US Fed  

The US Federal Reserves holds 45 percent of Germany's 3396 tons of gold while the Bank of England holds 13 percent and the Bank of France holds 11 percent. The rest is with the Bundesbank headquarters in Frankfurt.

BERLIN(BullionStreet): After criticisms flared up over it's silence over country's huge gold reserves stored abroad, the German central bank said it has devoloped a new concept on the issue, reports Handelsblatt.

According to the German language business newspaper,the Bundesbank has devoloped a plan to retrieve large parts of the German gold reserves stored for safety in the US, UK and France.

The plan, according to which Germany will hold more gold reserves, will be announced soon.

Analysts said the Bundesbank reacts to a report of the Federal Court to examine the financial statements of the bank and had advised her to create a current bearings concept and documented.

Currently, the gold of the Bundesbank outsourced their claims to New York, London, Paris and Frankfurt.

The US Federal Reserves holds 45 percent of Germany's 3396 tons of gold while the Bank of England holds 13 percent and the Bank of France holds 11 percent. The rest is with the Bundesbank headquarters in Frankfurt.

This equation will change soon after the plan, analysts added.

Bundesbank board member Carl-Ludwig Thiele had already said last fall that there was no compelling reason for storage in the French capital.

According to him, the central bank has decided to strive for a more balanced distribution of gold reserve holdings at home and abroad, thereby taking increased account of gold’s function of preserving trust and confidence.

He said, gold stored in your home safe is not immediately available as collateral in case you need foreign currency.

The gold held with the New York Fed can, in a crisis, be pledged with the Federal Reserve Bank as collateral against dollar-denominated liquidity. Similar pound sterling liquidity could be obtained by pledging the gold that is held with the Bank of England.

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