In total, at the end of 2018, central banks held about 33,200 tonnes of gold, or about one-fifth of the gold ever mined. In addition, these stocks are highly concentrated in the advanced economies of Western Europe and North America, a legacy of the days of the gold standard. This means that central banks have enormous price power in gold markets. Central banks are now net customers. The Bundesbank itself does not sell more small quantities of gold to the Ministry of Finance each year. The ministry uses precious metal to mark commemorative coins. In August 2009, 19 banks renewed the agreement and committed to sell a total of 400 tonnes of gold by September 2014. The International Monetary Fund has not signed this agreement. [6] In recognition of this, the major European central banks signed the Central Bank Gold Agreement (CBGA) in 1999, which limits the amount of gold that signatories will be able to sell together in a year`s time. Since then, three other agreements have been concluded, in 2004, 2009 and 2014. In the 1990s, sporadic sales by European central banks, which hold some of the world`s largest gold hordes, were often carried out behind closed doors, prices fell and the metal retained stable reserve status.

“Several central bankers involved had repeatedly said that they had no intention of selling their gold, but they had said so as individuals – and no one had taken note. I think that is what Mr. Duisenberg said when he said that they would make that statement to clarify their intentions. To address these concerns, 15 European central banks – those of the 11 eurozone countries and Sweden, Switzerland and the United Kingdom and the European Central Bank at the time – developed the first central bank gold agreement, “CBGA1. The agreement was signed in 1999 on the anniversary of the International Monetary Fund in Washington DC. At that time, central banks held almost a quarter of the total gold, estimated at about 33,000 tonnes in September 1999, and held an extremely influential position in the gold markets. “The independence of central banks is enshrined in law in many countries, and central bankers tend to be independent thinkers. It is worth asking why such a large group of them decided to cancel this very unusual agreement… At the same time, the Council is aware, through our close contacts with central banks, that some of the largest owners have been concerned for some time about the impact of unfounded rumours on the price of gold – and therefore on the value of their gold reserves – and on the use of official gold for speculative purposes.

a pivotal rate against the euro is set for the currency of each member participating in the non-euro area currency (`non-euro zone currency`); The contracting parties to this agreement participate in a joint notification of bilateral pivotal prices and possible changes to these currencies and the euro to joint market communication, as agreed in accordance with the common procedure covered in paragraph 2.3 of the resolution.