HC Deb 13 December 1999 vol 341 cc75-6W
Sir Peter Tapsell

To ask the Chancellor of the Exchequer to what extent the sales of gold reserves by the Bank of England are intended as a contribution towards the stability of bullion banks. [102148]

Miss Melanie Johnson

The gold sales are part of a technical restructuring of the UK's foreign currency and gold reserves to achieve a better balance in the portfolio by diversifying more widely and not being over exposed to one asset.

Sir Peter Tapsell

To ask the Chancellor of the Exchequer for how many central banks the Bank of England acts as a depository for the leasing of their gold reserves. [102150]

Miss Melanie Johnson

Details of any arrangements the Bank of England has with other central banks are commercially confidential.

Sir Peter Tapsell

To ask the Chancellor of the Exchequer by what criteria the Treasury will judge the success or failure of its policy to sell 415 tonnes of the gold reserves. [102151]

Miss Melanie Johnson

By achieving a better balance in the portfolio these sales will enable the Treasury to meet one of its performance targets ofminimising the cost of holding the Government's foreign currency reserves, while reducing risk".

Sir Teddy Taylor

To ask the Chancellor of the Exchequer how much gold has been sold by the Bank of England since he instructed the Bank to undertake such sales; and what was the average price per ounce received from each such sale. [102069]

Miss Melanie Johnson

The results of the gold auctions held on 7 July 1999, 21 September 1999 and 29 November 1999 are published in Bank of England Press Notices issued on those days. Copies of the Press Notices are available in the House of Commons Library.

Sir Peter Tapsell

To ask the Chancellor of the Exchequer if 40 per cent. of the proceeds from the gold sales by the Bank of England have been put into the Euro; and at what prices. [102149]

Sir Teddy Taylor

To ask the Chancellor of the Exchequer what is the total amount of euro-based currencies acquired by the Bank of England since the initiation of gold sales; and what was the average price per euro in each such purchase. [102070]

Miss Melanie Johnson

The proceeds from sales of gold have been invested in interest bearing foreign currency assets in broadly the same proportion as currently held in the net foreign currency reserves (40 per cent. dollars; 40 per cent. euro; and 20 per cent. yen). Table 2 of the Quarterly Report on UK Official Holdings of Foreign Currency and Gold for the period July to September 1999, published on 2 December provides a breakdown of the size and composition of the United Kingdom's reserve holdings.

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