Italy Fears For Gold Reserves As UK Seizes Venezuelan Gold
Italy Fears For Gold Reserves As UK Seizes Venezuelan Gold from TeleSUR
Following the law of unintended consquences, Italian lawmakers are taking action in response to the Bank of England’s unjustified refusal to return Venezuela’s gold.
Reacting to the Bank of England’s withholding around US$1.56 billion in gold reserves from Venezuela, the Italian Chamber of Deputies member Claudio Borghi suggested that the Italian state’s ownership of its own gold reserves be more clearly defined in a new law.
Marco Zanni, an Italian representative in the European Union’s Parliament, said that Borghi’s legal proposal aims to define the state of ownership of gold reserves held in the Bank of Italy, which currently has 2,400 tons of precious metals, an amount equivalent to approximately US$114 billion.
In addition Zanni points out that Italy must secure its property over its reserves held in private banks. Accordingly, the EU legislator asked the European Central Bank (ECB) to confirm that their member states gold reserves are only stored in its system and that such reserves are not owned by the ECB or any other bank.
“I asked the ECB to declare, in accordance with what is stipulated in the Treaties, that the gold reserves deposited in the EU banking system … are not owned by the ECB or the Italian banks,” Zanni said as reported to Cuneo, and explained that “the correct thing would be for this huge sum to remain available to the Italian state and its citizens, and not to banks that are private entities, even when they perform public functions.”
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MEP Zanni stressed that there is no law that currently defining the rights of an entity storing Italian gold reserves, most of which are currently stored in U.S. and British banking institutions. The Bank of Italy only receives an annual certificate from these banks confirming the Italian reserves remain intact.