Tuesday, March 5th 12:49 PM IST

Mexico may repatriate some Gold from BoE

# Mexico gold reserves  # Bank of England  # Bank of Mexico  

The Government Audit Office has concluded that 95% of the gold reserves of the Bank of Mexico are stored abroad and 99% of this gold is stored with the Bank of England.

MEXICO CITY(BullionStreet): Following some nations in repatriating gold reserves stored abroad, Mexico is likely to bring back some of it's gold reserves from the Bank of England, analysts said.

They said the Mexican government is under tremendous pressure from opposition and also from ruling partners to repatriate gold after the Audit Office issued an official statement, criticizing the Bank of Mexico for not auditing the gold it has supposedly bought and stored at the Bank of England.

The auditors ask the Central Bank of Mexico to make a physical inspection with the counterparty that has the gold under its custody, in order to be able to verify and validate its physical wholeness and compliance with the terms and conditions of dealing with this asset.

According to Global Financial Intelligence and the Gold Anti-Trust Action Committee report, the actions of the Mexican Government Audit Office are the result of a long campaign lead by Guillermo Barba, a Mexican civil activist and investigative journalist.

The Government Audit Office has concluded that 95% of the gold reserves of the Bank of Mexico are stored abroad and 99% of this gold is stored with the Bank of England.

However, the Mexican central bank has never inspected the gold it bought, has not performed purity tests on it and doesn’t even have a list of all the gold bars stored in London.

In their current state, Mexico’s gold reserves are no more than paper gold in the meaning that the Bank of Mexico doesn’t have any physical gold, but mere claims on a certain amount of gold supposedly held by the Bank of England.

The pending audit of the Mexican gold reserves is not a singular case of actions that show a high level of mutual distrust among central banks.

The latest move of the Bundesbank, which demanded the repatriation of its gold holding from Bank of New York, Bank of England and Banque de France, is another sign of distrust in the world’s financial system.

It is quite probable that after the audit, Mexico will decide to repatriate its gold holdings, possibly prompting other countries to follow suit.

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