The German Bundesbank has 3,350 tons of gold, the world’s second-largest stockpile after the United States. With the precious metal lately rising beyond $4,700 (€4,140) per troy ounce, those reserves are now worth nearly €440 billion.
According to Marcel Fratzscher, president of the German Institute for Economic Research (DIW), the sum represents a “huge piggy bank for crises” and Germany should be willing to utilize at least some of it.
Speaking with t-online, he said that the funds may be used to alleviate the burden on citizens and businesses, as well as to invest in education and infrastructure.Not all of Germany’s gold is in Frankfurt. Around 1,236 tonnes, roughly one-third of the total, are housed at the Federal Reserve in New York, with a further 404 tonnes held in London.
The arrangement has profound roots. Following World War II, Germany accrued enormous trade surpluses that were transformed into gold under the Bretton Woods system, a postwar monetary order in which member currencies were tied to the US dollar at fixed rates.
Michael Jäger, vice president of the German Taxpayers’ Association (BdSt) and president of the European Taxpayers Association, told Euronews that confidence in the US had “suffered greatly” as a result of Trump’s actions, and it was “high time” to replenish the reserves.
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