Keeping Slovakia’s gold at BoE has no additional risks

Keeping Slovakia's investment gold at the Bank of England after Brexit poses no additional risks, so there is no need to relocate it, stated Slovakia's central bank (NBS) in a letter sent to members of the parliamentary finance committee back in April of this year when the committee asked for its opinion on the issue of gold reserves, TASR press agency reports on Tuesday. Slovakia currently owns 31.694 tonnes of gold in gold bars, all of which is deposited at the Bank of England (BoE). MPs are set to discuss a resolution on returning the gold at an extraordinary meeting on Wednesday. The proposal was initiated by the governing coalition's Smer-SD party, which pointed to an impending financial crisis, the instability stemming from Brexit and the fact that the interest rate paid by the British bank is very low. Slovakia's central bank informed MPs in the letter that the London gold market provides a high degree of liquidity on the market, and that the BoE provides highly secure conditions for storing gold reserves. Slovakia's central bank has earned approximately €50 million in gold trading over the past ten years thanks to its cooperation with the Bank of England.