Gold Reserve Relocations: Are They Always Bad News for U.S. Dollar Reserves?

Central banks in Germany, France, & the Netherlands have relocated gold reserves out of the U.S. since 2013 without substantially reducing their U.S. dollar foreign exchange (FX) reserve allocations.
Unlike Russia & Turkey, which reduced dollar holdings alongside moving gold to domestic vaults to mitigate sanctions risk, euro area central banks have maintained high shares of U.S. dollar assets.
Germany shifted approximately one-fifth of its U.S.-held gold to domestic vaults between 2013 & 2017 while keeping its U.S. dollar FX reserve share above 80 percent.
The Netherlands repatriated about two-fifths of its gold from the U.S. in 2014, maintaining an 83 percent U.S. dollar share, & moved another two-fifths to London in 2026 despite a temporary 10-percentage-point dip in its dollar share.
France repatriated all its U.S.-held gold in 2025 & early 2026, yet its U.S. dollar FX reserve share remained steady at 60 percent.
The economic benefits of holding U.S. dollar assets, such as market depth & liquidity, appear to outweigh potential sanctions risks for these euro area central banks.
Official statements from these central banks do not cite sanctions or expropriation concerns as key motivations for the gold relocations.