Draft Law to Bring Gold Reserves Back to Romania Passes in the Senate

via business-review.eu:

Romanian senators adopted a draft law introduced by PSD leader Liviu Dragnea and senator Serban Nicolae to force Romania’s National Bank (BNR) to bring almost all of Romania’s gold back from reserves being held at the Bank of England in London, according to profit.ro.

The supporters of this project say that the BNR should no longer pay the fees to hold the gold abroad, considering that Romania has reached the status of a functional economy.

The project will now be sent to the Chamber of Deputies for debate. The Legislative Council says that such a change of the BNR statute needs endorsement from the Central European Bank.

“Of the reserve, the BNR can store gold abroad only with the purpose of obtaining revenue. Gold held by the BNR abroad cannot exceed 5 percent of the total amount of gold reserve,” the project reads. The current estimate is that 65 percent of Romania’s gold is being held abroad.

Opponents have said that bringing back the gold would endanger the government’s ability to borrow from external markets, especially in the case of a new recession. Furthermore, they say that returning the gold to the country would be a very costly process.

Romania’s gold reserve totals 103.7 tonnes and was worth EUR 3.84 billion at the end of last year.

 

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