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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (11719)	5/15/1998 6:39:00 PM
From: Kent C.	Respond to of 116845

European Bank Gold Selloff 'Is Unlikely' by Andi Spicer, Mining and Resources Editor Johannesburg - The new European Central Bank (ECB) was likely to hold on to its present gold and foreign currency reserves to underpin the value of the euro in its first few years, a French nominee for board membership of the bank said on Friday. Christian Noyer, speaking to a European parliamentary committee on his nomination, said the ECB and national central banks needed to keep their gold reserves to provide credibility for the euro currency "I think we have the necessary strike force," he said. The members of the zone and the creation of the bank were formalised a week ago at a landmark meeting of the European Union (EU). The ECB became operational on Monday. It took over from the European Monetary Institute (EMI) in making EU economic policy. Noyer's comment suggests that France believes the percentage of gold reserves in the new bank should be maintained at their present levels, which is about 27.5 percent of total reserves on average for the 11 members of the euro zone nations. If this is ECB policy then it would dispel much of the gloom over the gold price, which is undermined by worries that the bank will hold little or no gold in its reserves. Both France and Germany, the most powerful members of the euro zone, are thought to be ardent supporters of keeping a high percentage of gold to total reserves. Noyer, however, also said that only time would tell what would happen in the future, and that it might be necessary to use these reserves to pay debt.