Amid Criticism, Central Bank of Argentina Confirms Moving Gold Abroad

In a recent press release, the Central Bank of Argentina acknowledged sending part of its gold holdings abroad, stating that it had “recalibrated” the nation’s gold between its accounts. The institution faced criticism from some lawmakers who are concerned that this gold located abroad might be subject to confiscation due to an embargo order benefiting Argentine debt holders.

Central Bank of Argentina Confirms Moving Gold Abroad

The Central Bank of Argentina has confirmed that it moved an undisclosed amount of the nation’s gold abroad, previously held in national vaults. In a press release, the bank stated that it had completed a “recalibration operation” of the gold reserves among its accounts.

The bank also clarified that this operation had not affected the amount of gold held by the institution, reporting that it still held almost $5 billion worth of the precious metal.

The move has sparked criticism from several lawmakers who requested information about these operations due to their worries about the possibility of getting confiscated. Gold stored in London might be subject to a judicial embargo order benefitting holders of Argentine debt.

The bank disregarded these statements as “irresponsible,” explaining that they had political purposes and stressing these “put the security of the assets of all Argentines at risk.”

While neither the bank nor the Argentine government has reported on the exact purpose of this operation, in a recent Bloomberg article people with direct knowledge of the matter declared that the reserves would be financially certified. This means that President Milei could be preparing to use the gold as collateral to obtain financing.

Economy Minister Luis Caputo supported the idea of sending gold abroad before, assessing that it would be more useful for Argentina outside the country. In an interview, he explained:

Today there is gold in the bank, which is like having a property inside and you cannot use it for anything. On the other hand, if you have that gold outside, you can get a return on it and the country needs to maximize the returns on its assets.

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