Central Bank Gold Agreement 2020

The Central Bank Gold Agreement (CBGA), also known as the Washington Agreement on Gold, is an agreement that governs the official sale of gold. The original version of the agreement was signed in Washington, D.C on September 26, 1999. As part of the agreement, the European Central Bank, the Swiss National Bank and 13 other European central banks have committed to limiting sales to 2,000 tonnes over five years (400 tonnes per year). The World Gold Council welcomes the decision of European central banks to agree on a new bank-gold agreement (CBGA). The agreement, the fourth of its kind, marks an ongoing commitment by some of the world`s largest holders of gold reserves to preserve the clarity and transparency that this agreement offers to gold market participants. It also reaffirms the importance of gold as an asset in the world`s currency reserves. „This is absolutely the right decision,“ said Natalie Dempster, director general of central banks and law and order at the World Gold Council. „As part of the agreement, the European Central Bank (ECB), the 11 national central banks of the nations then participating in the new European currency, as well as Sweden, Switzerland and the United Kingdom, agreed that gold should remain an important component of the world`s monetary reserves and limit its sales to 400 tonnes (12.9 million ounces) per year over the five years from September 1999 to September 2004. A total of 2,000 tons (64.5 million onrs).

[2] The signatories confirm that gold remains an important component of the world`s monetary reserves, as it continues to offer advantages in asset diversification and none of them currently plans to sell large quantities of gold. In the 1990s, sporadic sales, often made behind closed doors by European central banks that hold some of the world`s largest gold reserves, drove prices down and undermined the metal`s status as a stable monetary reserve. Adrian Ash is Director of Research at BullionVault, the physical gold and silver market for private online investors. A former managing editor of London`s private investment advisory firm, he was the city`s correspondent for The Daily Reckoning from 2003 to 2008 and now writes regularly for many leading analytics sites, including Forbes, and is a regular guest on the BBC`s national and international radio and television news. Adrian`s views on the gold market were collected by the Financial Times and The London Economist magazine; CNBC, Bloomberg and TheStreet.com in New York; The star in Germany; Italy Il Sole 24 Ore and many other prestigious financial publications….

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