/ 27 September 2000

SWISS BANK TO SELL 200 TONNES OF GOLD

THE Swiss National Bank (SNB) has confirmed that it intends to sell 200 more tonnes of gold by the end of September 2001 as it continues its programme of divesting excess gold reserves. The sales are part of coordinated transactions by 15 European central banks under an agreement struck a year ago. The SNB has sold 120 tonnes of gold via the Bank for International Settlements from May through the end of this month. In all, the Swiss central bank intends gradually to divest 1 300 tonnes of excess gold reserves, about half of the 2 590 tonnes it had when the gold sales programme started this year. It has said the sales would leave it ample gold reserves but boost returns on its portfolio, given gold’s waning role as a store of value. – Reuters