Argentine gold transfers abroad spark lawmaker concerns over secrecy

A series of gold bullion transfers by the Argentine government to undisclosed foreign locations has sparked significant concern among lawmakers, who are questioning the lack of transparency surrounding these actions.

Despite experts suggesting that these transfers are intended to optimise resource utilisation, the government has not provided any official statements to clarify the matter.

The secrecy of these gold transfers has alarmed several Argentine politicians, including lawmaker Sergio Palazzo, who has been vocal about the need for transparency.

Palazzo disclosed that he has submitted multiple requests for information to the Central Bank of Argentina, all of which have been denied.

The Central Bank justified its refusal by citing the potential risks associated with disclosing the geographic location of the gold, arguing that such information could jeopardise the security of these assets and impact the country’s monetary and financial stability.

National Senator Juliana Di Tullio has also expressed her concerns, filing an information request with the Ministry of Economy.

She warned that she would take legal action if her inquiries are not addressed satisfactorily.

Di Tullio is seeking detailed information about the quantity of gold transferred, the risk assessments conducted before moving these assets, and the costs involved.

While no official details have been released, Palazzo estimates that there have been four or five such transfers, though the specific destinations remain unknown.

Sources familiar with the situation suggested that the transfers are part of an effort to manage the country’s resources more efficiently by holding reserves abroad, which may provide greater flexibility in their use.

However, the secrecy surrounding these transfers has raised concerns, especially in light of previous international challenges.

For instance, Venezuela is currently engaged in a prolonged legal battle to repatriate over $1.8 billion in gold bullion held in the United Kingdom, underscoring the potential risks of holding national assets in foreign custody.

The ongoing lack of transparency has fueled apprehension among Argentine lawmakers about the management and security of the country’s gold reserves.