Riksbank reallocates gold and foreign exchange reserves

Date 26/08/2008

The Riksbank intends to sell up to 15 tonnes of the gold reserve during the period 27 September 2008 to 26 September 2009. The sale is in compliance with the Central Bank Gold Agreement (CBGA) which was signed by 15 European central banks and came into force on 27 September 2004. The agreement, which runs for five years, enables the Riksbank to sell up to 60 tonnes of gold during this period. To date the Riksbank has sold a total of 45 tonnes of gold, 15 tonnes during the first year of the agreement and 10 tonnes during the second, third and fourth years. The Riksbank’s gold reserve currently amounts to 142 tonnes of gold.

The proceeds from the sale will be reinvested in the foreign exchange reserves, that is, in securities denominated in foreign currency. 

The proportion of gold is being reduced with a view to obtaining a better risk-adjusted return on the Riksbank’s assets, that is, the long term return on the assets is expected to be as high or higher and at the same time more stable. Gold will continue to be an important component of the Riksbank’s assets.

Completed sales of gold will be evident from the weekly reports that are published on a regular basis on the Riksbank’s website:  www.riksbank.se.