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According to a report by Spain's El Pais on July 28, the government of Argentine President Milley recently admitted that it was indeed transferring part of the country's gold reserves abroad, but did not specify the amount, destination, and purpose of the transfer. The report said that the asset reserves held by the Argentine Central Bank include nearly 2 million ounces of gold (about 57 tons), worth about US$4.5 billion.

According to the report, the news of the transfer of gold abroad was not officially announced by the Argentine government or the central bank, but was first disclosed by the Argentine banking workers' union La Bancaria. The leader of the union, left-wing congressman Sergio Palazzo, made a request to the Argentine central bank on July 8, citing the country's "Information Disclosure Law", asking "whether there was any action to transport gold bars abroad in June."

Specifically, he asked to know whether Argentina had transferred gold abroad on June 7 and June 28 through Lumil, a private security company that transports valuables, and British Airways. He also wanted to know the specific amount, the destination, the relevant administrative procedures and the names of the officials involved.

Central Bank of Argentina Source: Visual China

The report said that the Argentine central bank has 30 days to respond to the congressman's request, but has not yet responded. On July 19, Argentine Economy Minister Luis Caputo admitted that gold was indeed being transferred abroad.

According to a July 19 report by Argentina’s La Nación, in an interview with the newspaper, Caputo said: “This is a very positive move by the central bank, because holding gold in the central bank is like owning real estate, buildings, you can’t do anything with it. If you take the gold outside, you can get a return from it, and the reality is that the country needs to maximize the return on its assets. Locking gold in the central bank and not doing anything is not good for the country. It’s better to keep it outside so that you can get some returns.”

To reconfirm the news, journalist Antonio Laje asked Caputo if it was necessary for the gold to be outside Argentina to get such a return. "Of course, it is," the economy minister replied.

Spain's El País said Caputo's remarks indicated that Argentina was transferring gold abroad to obtain returns. However, many economists warned that if this is true, considering that these returns are very low, the reasons for the transfer - plus the cost of the required insurance premiums, do not justify this practice. But there are economists who support this move, arguing that this is a common operation to obtain returns from gold reserves. In addition, there are concerns that due to the long-standing legal proceedings filed by foreign creditors against Argentina, the gold is at risk of being seized abroad.

In a statement released by several Argentine lawmakers, the main opposition camp accused the lack of transparency and asked Central Bank President Santiago Bausili to "urgently" explain "why they took the gold" out of the country and "how much they took away." The lawmakers also asked "what risks this practice would bring" and "whether the gold could be seized during transportation or in the bank it was delivered to."

Carlos Bianco, a senior government official in Buenos Aires province, said moving the gold out of Argentina would increase risks, noting that the gold could be used as collateral if Argentina were to be sanctioned.