UK GOLD SALES 2000-2001

The Treasury today confirmed that it plans to sell 150 tonnes of gold in 2000-2001, equivalent to the amount sold in 1999-2000 on a pro rata basis. These sales form part of the programme announced on 7 May 1999 to restructure the United Kingdom's reserve holdings. As in 1999-2000, the sales will be made through Bank of England auctions.

There will be six auctions during 2000-2001, starting in May. As in 1999-2000, the auctions will be of approximately 25 tonnes each, conducted on a single price basis.

The Bank of England is today issuing a revised Information Memorandum setting out the detailed terms and conditions of the auctions. Detailed plans for gold sales in 2001-2002 will be announced nearer the time.

NOTES FOR EDITORS

1. The Treasury announced on 7 May 1999 (HM Treasury press release 77/99) its intention to restructure the UK reserves holdings to achieve a better balance in the portfolio by increasing the proportion held in currency.

2. It announced that it would sell 125 tonnes of gold in the remainder of 1999-2000 through a programme of auctions, and that detailed plans for auctions in 2000-2001 would be announced nearer the time.

3. The announcement of the programme for gold sales in 2000-01 was made in answer to a Parliamentary Question from Barbara Follett (Stevenage).

4. Four auctions have so far been held in 1999-2000, with the first in July 1999. Each auction has been of 25 tonnes of gold. The fifth auction in 1999-2000 will be held on 21 March. The terms and conditions of those auctions are set out in an Information Memorandum issued by the Bank of England on 11 June 1999.

5. In September 1999, 15 European Central Banks announced that their sales would not exceed 2000 tonnes over the following five years. The UK sales for 2000-2001 are consistent with that announcement.

6. Further details of the auction management programme are available from the Bank of England press office in 0171 601 4411.

7. Other media enquiries should be addressed to Charles Keseru at the Treasury press office on 0171 270 5188.