The Central Bank of Argentina (BCRA) has confirmed that it has completed the transfer of portions of its gold reserves to various accounts abroad. This move, initially disclosed in mid-July, has sparked considerable debate and scrutiny.
According to a statement from the BCRA, the bank has successfully executed transfers of its gold reserves among different accounts. The statement did not specify the amounts involved but emphasized that the operations were part of standard account rebalancing measures.
This action comes amid concerns that relocating the gold could expose it to potential seizure as collateral for outstanding debts. Santiago Bausili, head of the BCRA, reassured the public that these transfers were thoroughly planned and are consistent with practices from the past decade.
“The BCRA’s Organic Charter and Law 23,928 authorize the daily management of reserves, including gold, foreign exchange, and other assets,” the BCRA stated. “The management of gold reserves, whether physical or electronic, has remained consistent for over ten years.”
The central bank also clarified that these rebalancing operations do not affect the total volume of Argentina’s gold reserves, which are valued at approximately USD 4.981 billion, as per the balance sheet dated August 23, 2024.
The rationale behind moving the gold was reportedly to facilitate its certification and use as collateral for securing financing. Prior to the transfer, about half of Argentina’s gold was held domestically, while the other half was stored in London.
BCRA officials criticized what they deemed “irresponsible” reporting regarding the gold’s relocation and stressed the need for confidentiality to safeguard the nation’s assets.
“The BCRA is concerned about the premature and politically motivated dissemination of information about these operations, which jeopardizes the security of assets belonging to all Argentinians,” the statement read. “Information about BCRA reserves is handled confidentially to protect its security, with oversight by the General Audit of the Nation and relevant control entities.”
The controversy began when Sergio Palazzo, Secretary General of the Banking Association, revealed that the BCRA had moved gold bars from its headquarters to London, raising fears of potential confiscation due to embargo orders by Argentina’s creditors.
Analysts speculate that the gold reserves may ultimately be headed to the Bank for International Settlements (BIS) in Basel, where Argentina has historically deposited gold. If this is the case, it would reinforce the notion that the assets are secure, as BIS deposits are protected by “sovereign immunity,” exempting them from embargo requests.
Luis Caputo, Argentina’s Minister of Economy, defended the move, stating, “Having gold stored domestically without the ability to use it is like having a property you cannot access. By moving it abroad, the country can potentially earn returns, which is crucial for maximizing asset value.”
