Friday, April 26th 02:18 PM IST

Swiss central bank may limit Gold sale

# Swiss National Bank  # CHF  # gold repatriation  # reserves  

According to Thomas Jordan, chairman of the Swiss National Bank's governing board, the proposal to restrict the sale of gold reserves could hinder monetary policy.

BERN(BullionStreet): Switzerland's central bank, SNB said it will buy foreign currencies in unlimited quantities and also proposed a plan to restrict the sale of country's gold reserves.

According to Thomas Jordan, chairman of the Swiss National Bank's governing board, the proposal to restrict the sale of gold reserves could hinder monetary policy.

He also said Swiss National Bank will stand by its cap on the Swiss franc against the euro.

The Swiss Peoples Party last week launched an initiative to prevent the SNB from selling any of its gold reserves and force it to hold at least 20% of its assets in the precious metal.

The initiative has gathered the required 100,000 signatures necessary for a national referendum, the government said last week.

The issue of gold sales by the SNB has been a controversial one and follows the disposal of some of its gold reserves between 2000 and 2008, as part of an agreement among global central banks to reduce their holdings of gold.

The SNB's gold reserves have remained unchanged since 2008 at 1,040 tons. At the end of 2012 the reserves were valued at just over 50 billion Swiss francs ($53.76 billion), representing around 10% of its total assets.

More than 70% of its of the SNB's gold is stored in Switzerland. Around 20% is kept at the Bank of England and around 10% at the Bank of Canada, an arrangement that had been in place for more than 10 years.

After reading this article, people also read:

How about a fully featured Android App for your business?

Most Popular

Bullion Street Newsletter