Serbia repatriates its entire gold reserves

Serbia has moved its entire gold holdings to its own central bank. That's what the governor of the central bank Jorgovanka Tabakovic made this week well-known. In a recording for the Serbian television program Pink, she said that the entire gold supply is now in her own country. In doing so, Serbia joins an increasing number of countries repatriating gold reserves.

The central bank has structurally added gold to its reserves over the past twenty years. In 2019, on the advice of President Aleksandar Vucic, she bought in one go nine tons of gold increased the share of gold in total reserves to 10%. Since then, the central bank has bought even more bullion, bringing its total gold reserves to more than 37 tonnes. This stock has at the current Gold price a market value of over $2 billion.

Gold reserves in their own country

Until recently, part of Serbia's gold reserves were stored in Switzerland, but in consultation with the president, the central bank decided earlier this year to move the gold to its own vault. Governor Tabakovic: "Vucic told me that he believes the gold should be here in Serbia. After all, you never know what might happen in the world."

The central bank plans to expand its gold holdings even further. President Vucic said this last month during the opening ceremony of a new gold mine in the country. This new gold mine, which was created in cooperation with China, will sell part of its production to the central bank. The governor of the central bank was also present at the opening of this gold mine.

Central banks repatriate gold

In recent years, several central banks have withdrawn (part of) their gold reserves. Germany and the Netherlands started doing so in 2013 and 2014 respectively, followed by Austria in 2015. In recent years, we have seen several Eastern European countries follow suit. Similarly, we have Poland and Hungary In the meantime, part of their gold reserves have been brought back to their own country. These countries have also bought a lot of gold in recent years.

Serbia joins this group of countries and, like its predecessors, refers to increasing economic and geopolitical risks. The gold stock serves as the ultimate reserve for central banks, as it has no counterparty risk and is not sensitive to sanctions. Also, gold can always be used for a 'reset' of the monetary system.

Serbia has been buying a lot of gold in recent years (Source: World Gold Council)

This contribution was made from Geotrendlines