In 2019, the undersigned banks agreed not to renew the contract because they had not sold large volumes of gold for some time.  Their sales had gone from the near limit agreed in 2007 to almost zero in 2012, before remaining very low thereafter.  The major European central banks did not start buying gold, but purchases from Poland and Hungary turned the continent into a net buyer. (Report by Francesco Canepa and Peter Hobson; “This is absolutely the right decision,” said Natalie Dempster, Executive Director of Central Banks and Public Policy at the World Gold Council. The Washington Gold Agreement was signed on September 26, 1999 in Washington, D.C. at the annual meeting of the International Monetary Fund (IMF), and U.S. Treasury Secretary Lawrence Summers and Federal Reserve Chairman Alan Greenspan were present.  The second version of the agreement was signed in 2004 and the agreement was renewed in 2009. They stated that gold would remain an important component of the world`s foreign exchange reserves and agreed to limit their joint sales to 2,000 tonnes, or about 400 tonnes per year, over the next five years. 3. The signatories acknowledge the IMF`s intention to sell 403 tonnes of gold and found that these sales could be placed within the above limits. The European Central Bank (ECB) and 21 other central banks that signed the Central Bank`s (CBGA) gold agreement have decided not to renew the agreement after it expires in September 2019. They also announced that their credit and use of derivatives would not increase over the same five-year period.
The undersigned banks then indicated that the total amount of gold they had leased in September 1999 was 2,119.32 tonnes. On 19 May 2014, the European Central Bank and 20 other European central banks announced the signing of the fourth central bank gold agreement. The agreement, which applies from 27 September 2014, has a five-year term and the signatories stated that they currently have no plans to sell large quantities of gold. For more information, click here. Originally published in blog.novemgold.com October 21, 2019. In addition to the destabilizing effect of these sales, market banks` fears about central bank intentions have led to a further decline in the price of gold. This has caused considerable pain for gold-producing countries. These included a number of developing countries, including a considerable number of countries classified as HIPCs (highly indebted poor countries).