Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (1633)	5/10/1999 9:49:00 PM
From: porcupine --''''>	Read Replies (2) \| Respond to of 1722

UK to sell gold and buy dollars, euros, and yen "UK says to start selling some gold reserves" LONDON, May 7 (Reuters) - The British Treasury said on Friday it intended to sell 125 tonnes of gold in fiscal 1999/2000 as part of a restructuring of the country's reserve holdings. The Treasury said there would be five auctions, likely of 25 tonnes each, with the first on July 6. The Treasury also said it intended to reduce Britain's gold holdings over the medium term to 300 tonnes from a current level of 715 tonnes, at a rate similar to that announced on Friday. The Treasury said the gold holdings would be replaced by foreign currency assets, split roughly 40 percent in U.S. dollars, 40 percent in euros, and 20 percent in yen. A Treasury spokesman said that if Britain were to join the euro, it would need to deposit around 140 tonnes of gold at the European Central Bank, less than half the level it intends to retain. The Treasury said Britain's gross reserves totalled $37 billion at market prices but its foreign currency liabilities amounted to $22 billion. The $6.5 billion held in gold therefore makes up around half of the unhedged, or net, reserves. The programme of gold auctions will be made from the exchange equalisation account. Future auctions in 1999/2000 will be in September, November, January and March 2000. For full details, double-click on ((London newsroom +44 171 542 5109, fax 542 6726, e-mail dan.lalor@reuters.com))