RTTNews - Friday, Europe's 19 central banks, including the European Central Bank, the Swiss National Bank and the Sveriges Riksbank agreed to put a new five-year cap on gold sales.

These institutions decided that their annual sale of gold will not exceed 400 tonnes over the five-year period and total sales will not exceed 2,000 tonnes.

The new programme is due to start on 27 September 2009, immediately after the end of the previous agreement, central banks said in a joint statement.

According to the statement, the central banks recognize the intention of the International Monetary Fund to sell 403 tonnes of gold. They hold the view that such sales can be accommodated within the above ceilings.

The Swiss National Bank said it has no plans for any further gold sales in the foreseeable future. With gold holdings amounting to 1,040 tonnes, it holds a substantial part of its currency reserves in the form of gold.

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