Central banks’ gold migration across multiple countries: Safe haven and sanctions risks reshape global central banks’ gold storage landscape

Huitong Network, September 11 — StoneX Head of Market Analysis for Europe, Africa, and Asia, Rhona O’Connell, pointed out that recent media reports can easily mislead the market; multiple central banks are not selling off gold reserves but are relocating storage locations out of concern for potential sanction or seizure risks. France and the Netherlands have both completed gold transfer operations, with the 2022 freezing of the Russian central bank’s reserves acting as a core driving force. The Dutch central bank officially announced an 86-tonne gold transfer plan on September 2, aimed at enhancing the liquidity and risk resistance of reserves during crises, reshaping the landscape of global central bank gold storage.

Many news headlines can mislead the market into believing that central banks are massively selling their gold reserves.

Rhona O’Connell, Head of Market Analysis for StoneX Europe, Africa, and Asia, stated that this is not the case; central banks are only relocating their gold storage. The core reason behind this is an increasing market worry that offshore reserves face risks of sanctions and seizures. Using France and the Netherlands as case studies, she analyzed this global wave of central bank gold relocation. The Dutch central bank publicly announced its gold transfer plan on September 2, completing a cross-regional allocation of 86 tonnes, which drew considerable attention from the international precious metals market.

Unveiling the French and Dutch Central Bank Operations: Book-Swaps and Physical Transfers, Not Gold Sell-Offs

Rhona O’Connell noted that from June 2025 to January 2026, the French central bank sold 129 tonnes of gold held in New York—less than 5% of its official reserves totaling 2,437 tonnes—and subsequently repurchased a similar amount in the European market, effectively relocating this batch of gold to Paris. Initial news reports caused misunderstandings by emphasizing France’s disposal of gold in the US without mentioning the subsequent repurchase in Europe; in essence, it was merely a relocation of storage.

The Netherlands followed suit with similar operations. Among these, 59 tonnes of gold were swapped in location, transferred into vaults in London; the remaining 27 tonnes were physically shipped back from New York and Ottawa to Zeist, Netherlands. This part of the physical transfer likely bypassed the process of recasting London good-delivery bars. The Dutch central bank’s total transfer of 86 tonnes consisted of 59 tonnes in swaps plus 27 tonnes in physical relocation.

Dutch central bank Governor Olaf Sleijpen stated that the gold transfer improved the tradability of the country's gold reserves. Although the central bank hopes never to use these reserves, it must enhance the nation’s economic resilience and crisis response capability.

Sanctions Risk Raises the Alarm, Prompting Global Central Banks to Rethink Reserve Security

The risk of asset seizure is the main driver behind this series of gold relocation actions. Rhona O’Connell analyzed that the root of this accelerated movement originated from the West freezing approximately $300 billion of Russian central bank reserves in 2022. This incident sent a clear message to the central banks of many non-aligned countries:

Another recent related event has also attracted market attention: the Bank of England holds Venezuela’s gold, which remains frozen until the UK government recognizes Venezuela’s current regime. Rhona O’Connell added that Venezuela has recently requested the return of its gold, and there are reports of the US participating in related negotiations. Timeline clues suggest this situation may be linked to US-Venezuela transactions.

Major Changes in Dutch Gold Reserve Structure: The Value of Gold as an Anchor of Trust Stands Out

The Dutch central bank stated that this gold transfer aims to strengthen crisis response capabilities and enhance the liquidity and tradability of reserve assets. The central bank explained that gold held in New York and Ottawa cannot be quickly or directly accessed in a crisis situation. Placing a larger portion in London strengthens gold’s role as an “anchor of trust.” The central bank believes gold is the ultimate reserve asset, particularly suitable for hedging extreme systemic risks.

Prior to this transfer, nearly 31% of Dutch gold reserves were stored domestically, about 18% in London, over 31% in New York, and nearly 20% in Ottawa. After the adjustment, 32% of official gold reserves are now held in London, while New York and Ottawa each hold 18.5%. The adjustment significantly reduces the proportion stored in North America, reallocating more to London and the Netherlands, optimizing reserve mobilization efficiency under crisis conditions.

Conclusion

The gold relocation operations by both the French and Dutch central banks clarify that the market’s interpretation of “central bank gold selling” is a misunderstanding—these moves are, in essence, large-scale gold asset relocation efforts driven by considerations about the security of reserves. The 2022 offshore foreign exchange reserve freeze incident profoundly changed how central banks worldwide evaluate reserve asset security, making the physical location of gold a key factor in reserve management. The Netherlands has optimized its gold storage distribution, reducing the proportion kept in North America and enhancing the reserve’s liquidity during crises.

This series of central bank measures continues to support the long-term allocation value of gold and signals that the global structure for official gold reserve storage will keep evolving. Precious metals investors should continue to track central bank actions on this front.


Spot Gold Daily Chart Source: Yihuitong

Beijing Time, September 11, 12:19, spot gold quoted at $4,320.77/ounce