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Why does the Central Bank have gold and where is it stored?

Why does the bank have gold?

Gold has long been part of the Central Bank’s international reserves. The international reserves are a kind of safety fund for the country in foreign currency. Gold can generally be priced if necessary and it tends to rise in value when there is global unrest. Gold is widely part of international reserves.

Where is the Central Bank's gold stored?

The Central Bank's gold reserves have for decades been stored at the Bank of England and for a time the gold was leased out under special agreements. The Central Bank owns about 160 gold bars, each of which has a volume of about a litre and weighs about 12.5 kilograms, equivalent to 401 ounces per bar. An ounce (Troy ounce) weighs 31.1 grams. The value of the gold at the end of 2023 was around ISK 18 billion. The gold is calculated as part of the Central Bank’s international reserves, which at that time amounted to approximately ISK 790 billion.

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