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To: Haim R. Branisteanu who wrote (72826)	3/14/2010 12:38:21 PM
From: Haim R. Branisteanu	Read Replies (2) \| Respond to of 74559

:Bundesbank Against Using Gold Reserves For Monetary Fund (Adds Finance Ministry comment, background.) FRANKFURT (Dow Jones)--Germany's Deutsche Bundesbank opposes using its gold reserves to back a possible European monetary fund, the central bank said Sunday, addressing a press report that said the German government is considering the option that euro-zone members use their reserves for such a purpose. "The Bundesbank has no knowledge at this point of any such plans by the German government or the European Union," the bank said in short statement. "Were such plans to be confirmed, they would meet the Bundesbank's firm resistance." Weekly magazine Focus reported that the German government is considering a proposal whereby gold reserves could be put on the books of a European monetary fund. The use of gold reserves is one option of many, a spokesman from the Finance Ministry said in response to the report, but added that "there is, at the moment, no debate" on such a plan. "For us, further coordination with our European partners is important, especially France. Then we'll see," he said. The proposal from Germany's Finance Ministry, according to Focus, would pool the gold reserves from euro zone countries' central banks. Greece, whose present difficulties have triggered the consideration of such a monetary fund, has over 112 tons of gold, according to the magazine. The Bundesbank said its board decides autonomously about the use of gold reserves. "Neither the German government nor the European Central Bank has a right to access the gold reserves," the bank said. German Finance Minister Wolfgang Schaeuble has proposed a monetary fund that could aid euro-member states in "urgent" cases in which a nation's deficit problems pose a danger to the whole euro zone. While the government has supported the idea, the ECB has been critical. Central bank Web site: www.bundesbank.de