Romanian Senate Approves Bill Aiming to Repatriate Central Bank Gold Holdings

The proposal was adopted with 60 votes for, 29 against and 16 abstentions.

The bill was initiated by Lower Chamber Chairman Liviu Dragnea and social-democrat Senator Serban Nicolae at the end of February.

The act would see Romania’s central bank repatriate 91.5% of its gold reserves deposited outside the country, amounting to more than 56 tons of gold.

According to the initiative, the central bank’s foreign gold holdings will be capped at a maximum of 5% of its total gold reserves. Recently, central bank deputy governor Liviu Voinea stated that approximately 59% of the institution’s gold reserves are deposited at the Bank of England.

The bill’s initiators argue that Romania has reached a level of economic stability which would warrant repatriating its foreign gold holdings, adding that the measure would also eliminate deposit costs. Senator Serban Nicolae quoted data stating the yearly costs for maintaining the foreign deposit are of EUR300,000, but did not offer a source for the figure.

“It would also be a sign of stability. Romania is not an unsafe country anymore, not a country where tensions or conflicts could appear. Romania has a constant economic growth for several years, is stable, inflation is kept under control, the national currency is predictable and stable, which justifies taking this measure similar to other states for the same reasons,” the senator told MEDIAFAX on February 28, after the bill was filed.

Romanian opposition parties have criticized the measure, with USR MP Stelian Ion deeming it an “attempt by the ruling coalition to grab hold of Romania’s gold reserves” and PNL Lower Chamber group leader Raluca Turcan accused the initiative of being “Russian propaganda”.