Explore, connect, thrive in
the expat community

Expat Life: Local Discoveries, Global Connections

Register Log in
BuySell BA

Caputo confirms Argentina has moved some of its gold overseas

import export

import export

Well-known member
Yep. I read the news earlier today. They will probably move it to London which they have done before under Macri.

en.mercopress.com

Caputo confirms Argentina shipped gold abroad

Argentina's Economy Minister Luis Toto Caputo confirmed rumors from opposition lawmakers and union leaders indicating that the Central Bank (BCRA) was transferring gold from the country's coffers to foreign destinations. He explained that the move sought to generate a return on an otherwise...
en.mercopress.com en.mercopress.com
 
Did Argentina have any of its Gold reserves in the USA? This article from a few months ago said it did.

www.linkedin.com

Trust in Tatters: Nations Withdraw Gold from US Amid Financial Fears

Amid growing apprehensions about the stability of the US financial system and international trust eroding over recent events, several nations have initiated the process of withdrawing their gold reserves stored within US borders. The exodus signals a broader sentiment of distrust in the US as a safe
www.linkedin.com www.linkedin.com
 
Vince said:
Yep. I read the news earlier today. They will probably move it to London which they have done before under Macri.

en.mercopress.com

Caputo confirms Argentina shipped gold abroad

Argentina's Economy Minister Luis Toto Caputo confirmed rumors from opposition lawmakers and union leaders indicating that the Central Bank (BCRA) was transferring gold from the country's coffers to foreign destinations. He explained that the move sought to generate a return on an otherwise...
en.mercopress.com en.mercopress.com
Click to expand...
I'm not sure that the UK or Switzerland would cooperate in a seizure of Argentine properties or gold. There does seem to be some desperation which might be why even with intervention, the blue dollar rate still hasn't moved too much.
 
Jenn said:
But if they have gold in the US can't Burford Capital block to seize it? I'd think the USA would be the last place Argentina wants to move it's gold.

Click to expand...
This is bad news. Argentina's gold is best in it's own vaults. UK has been known to seize gold. Look at Venezuela.

 
I wouldn't look at this as a positive no matter how much they want to spin this as positive. Especially if it took a request by Unions to get it announced. I don't know enough about if this gold can be seized by these vulture funds but Argentina probably needs to be careful with that with the courts.
 
Argentina has to be careful as it's lost cases in Europe as well. The London Court of Appeals has also ruled that Argentina must pay 1.3 Billion Euros.

buenosairesherald.com

GDP coupon case: Argentina loses US$1.5 bn appeal in London - Buenos Aires Herald

The case will be closed unless Argentina secures permission to appeal to the Supreme Court
buenosairesherald.com

Some lawyers are saying that plaintiffs in these other cases can't legally seize the gold outside of Argentina because the lawsuits are against the Republic of Argentina but the Central Bank of Argentina owns the gold.

I'm not sure I would be willing to bet that the gold can't be seized. Hedge funds so far have been successful. They most likely will file requests for the gold. It would be a disaster if Argentina moved the gold outside of Argentina and then it ended up getting seized for these judgements it owes.
 
Finance Prof said:
Argentina has to be careful as it's lost cases in Europe as well. The London Court of Appeals has also ruled that Argentina must pay 1.3 Billion Euros.

buenosairesherald.com

GDP coupon case: Argentina loses US$1.5 bn appeal in London - Buenos Aires Herald

The case will be closed unless Argentina secures permission to appeal to the Supreme Court
buenosairesherald.com

Some lawyers are saying that plaintiffs in these other cases can't legally seize the gold outside of Argentina because the lawsuits are against the Republic of Argentina but the Central Bank of Argentina owns the gold.

I'm not sure I would be willing to bet that the gold can't be seized. Hedge funds so far have been successful. They most likely will file requests for the gold. It would be a disaster if Argentina moved the gold outside of Argentina and then it ended up getting seized for these judgements it owes.
Click to expand...
Yikes! I read that case where Argentina got an old yacht seized a few years ago. I'm not sure of the distinction of Argentina vs. Central Bank. It all seems to Argentina to me. That would be quite a blunder if Argentina's gold gets seized. I'd think they would want to keep all this gold inside of Argentina.

It it got seized, won't Caputo and Milei look like idiots?
 
Betsy Ross said:
I wouldn't look at this as a positive no matter how much they want to spin this as positive. Especially if it took a request by Unions to get it announced. I don't know enough about if this gold can be seized by these vulture funds but Argentina probably needs to be careful with that with the courts.
Click to expand...
It sounds like you are correct to worry about the gold getting seized. This is a good article that talks about it. I wonder why the government is not more transparent about this? Seems like they have to respond within 30 days.

english.elpais.com

The mystery of Argentina’s gold: Milei admits that it was transferred abroad, without specifying the quantities or destination

While the government acknowledges that gold reserves have been sent outside the country, there’s no official information available regarding the purpose of the operation. The gold is now exposed to the risk of being seized, due to long-standing claims against Argentina made by foreign creditors
english.elpais.com english.elpais.com
 
MikeYoung said:
It sounds like you are correct to worry about the gold getting seized. This is a good article that talks about it. I wonder why the government is not more transparent about this? Seems like they have to respond within 30 days.

english.elpais.com

The mystery of Argentina’s gold: Milei admits that it was transferred abroad, without specifying the quantities or destination

While the government acknowledges that gold reserves have been sent outside the country, there’s no official information available regarding the purpose of the operation. The gold is now exposed to the risk of being seized, due to long-standing claims against Argentina made by foreign creditors
english.elpais.com english.elpais.com
Click to expand...
I saw that article too. I don't think the risk/reward is worth it. Caputo's explanation doesn't make sense about earning interest income. It sounds like Argentina is planning something else with this that they don't want to disclose. If this gold ends up getting seized to pay Buford, they are going to look like idiots and Caputo will probably have to resign.
 
Vince said:
I saw that article too. I don't think the risk/reward is worth it. Caputo's explanation doesn't make sense about earning interest income. It sounds like Argentina is planning something else with this that they don't want to disclose. If this gold ends up getting seized to pay Buford, they are going to look like idiots and Caputo will probably have to resign.
Click to expand...
Argentina probably can't be transparent about where it is exactly. All of the people that are owed funds can tie up this in courts. It will be interesting where the Gold is and ultimately what happens to it.
 
Finance Prof said:
Argentina probably can't be transparent about where it is exactly. All of the people that are owed funds can tie up this in courts. It will be interesting where the Gold is and ultimately what happens to it.
Click to expand...
Regardless of what they lined it, there will be arguments from the Left that talk about lack of transparency. I just hope this does now blow up in their face. No room for mistakes of this magnitude right now.
 
Betsy Ross said:
Regardless of what they lined it, there will be arguments from the Left that talk about lack of transparency. I just hope this does now blow up in their face. No room for mistakes of this magnitude right now.
Click to expand...
Caputo is a smart businessman. My husband worked with Mr. Caputo while we lived in Buenos Aires. I am sure that risk/reward were thought of ahead of time.
 
fetch rover said:
Caputo is a smart businessman. My husband worked with Mr. Caputo while we lived in Buenos Aires. I am sure that risk/reward were thought of ahead of time.
Click to expand...
Regardless of how intelligent he might be, I'm sure the company that won the $16 billion dollar lawsuit is following along very closely!
 
You must log in or register to reply here.

Similar threads

Economy The number two of the IMF began her mission in Argentina and today she will meet with Minister Luis Caputo - Infobae
Replies
1
Views
94
Jenn
J
Economy Argentina's Milei Devalues Peso by 54% in First Batch of Shock Measures - Bloomberg
2 3 4
Replies
72
Views
1K
StatusNomadicus
StatusNomadicus
Economy Milei's optimism after the trip to the US: he believes that the fiscal goal with the IMF for the first quarter was met - Infobae
Replies
1
Views
100
Billy Goat
Billy Goat
Politics Javier Milei delegated control of public works to Luis Caputo - Infobae
Replies
0
Views
113
All the Answers
All the Answers
Politics The Government will give control of the trust funds to the Ministry of Economy and Luis Caputo continues to gain power - Infobae
Replies
0
Views
33
Craig
C
Community Insight...

Engage explore adapt in your expat community.

Receive personalized job market insights from seasoned expats in your area

Discover local cultural nuances and festivities shared by community members

Get your tailored expat living guide curated by experienced locals

Expats BA Community Banner

The community built for the true expat

If you're new to ExpatsBA forum, the first step is to sign up.

Sign in Register
Back
Top