(Kitco News) – France could be next on the list of countries that wants to take its gold back, if the leader of a far-right political party has her way.
Tuesday, Marine Le Pen, leader of the Front National party of France, who is also the front runner to potentially be France’s new president, penned an open letter, in French, to Christian Noyer, governor of the Bank of France, requesting that the country’s gold holdings be repatriated back to France.
“L’institution monétaire que vous dirigez a pour mission historique d’être la banque centrale dépositaire des réserves monétaires nationales et notamment des réserves d’or. Selon notre vision stratégique et souveraine, celles-ci n’appartiennent ni à l’Etat, ni à la Banque de France mais bien au peuple français et de surcroît servent de garantie ultime à la dette publique et à notre monnaie,
[The monetary institution that you lead has historically served as the reserve central bank for France’s monetary and gold reserves. In our strategic and sovereign vision, these do not belong to the state, nor the Bank of France, but to the French people, which serve as the ultimate guarantee of public debt and our money],” she wrote.
Not only does Le Pen want to see the gold back in France but she also recommended that the central bank take advantage of the recent price drop and buy more gold, boosting reserves by another 20%. She also recommends that the central bank never sell its gold reserves.
Finally, Le Pen also asked that an independent body be allowed to audit the country’s current holdings of 2,435 metric tons.
“Aussi, en fonction de la situation que nous découvrirons, je vous exhorte à procéder :
– Au rapatriement urgent sur le sol français de la totalité de nos réserves d’or se trouvant à l’étranger.
– A l’interruption immédiate de tout programme de cession d’or.
– A l’inverse, à une réallocation progressive d’une partie significative des réserves de devises au bilan de la Banque de France par l’achat d’or, lors de chaque baisse significative du cours de l’once (recommandation 20%) [Also, depending on our findings, I would advise you to;
– Urgently repatriate all our gold reserves that are located abroad.
– Cease all gold sales programs
– Inversely, progressively reallocate foreign exchange reserves to the Bank of France by purchasing gold during substantial price drops per ounce (20% recommendation)], she wrote.
“Tout comme vos héroïques prédécesseurs de la Banque de France en 1939 et 1940 avaient organisé l’évacuation de l’or français, vous vous devez d’entreprendre cette vaste opération de sécurisation du trésor national, acte patriotique qui sera reconnu le moment venu par l’opinion publique[Like your heroic predecessors from the Bank of France in 1939 and 1940 who organized the evacuation of French gold, you should undertake the vast security operation of securing our national treasure, a patriotic act which would immediately recognized by the general public],” she wrote.
According to data from the International Monetary Fund, France has the fifth largest gold reserves in the world, making up 65.3% of its total foreign reserves.
A September poll, conducted by Ifop, showed strong support for Le Pen as a potential presidential candidate and could beat current president Francois Hollande in a “hypothetical” second-round runoff. Of course, France’s next presidential election won’t be held until 2017.
Le Pen’s request comes only a few days after Holland announced that it repatriated 122.5 metric tons of gold, worth about $5 billion dollars back to Amsterdam from the U.S.
The Netherlands currently holds 612.5 metric tons of gold, presenting about 54.1% of its total foreign reserves.
According to the central bank, 31% of its reserves are now held in Amsterdam and it maintains some gold reserves outside of the country with about 31% still in New York with the Federal Reserve;20% is with the Bank of Canada and 18% is with the Bank of England.
In addition to a more balanced division of the gold reserves…this may also contribute to a positive confidence effect with the public,” the Dutch central bank said in a statement.
By Neils Christensen of Kitco News, translations by Alex Létourneau of Kitco News; nchristensen@kitco.com, aletourneau@kitco.com