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Central Bank gold lending dips by 164 tonnes in 2001: GFMS
For the first time since 1993, the quantity of gold lending by the world`s central banks recorded a decline of 164 tonnes during 2001, according to the annual bullion market report released by London-based gold fields mineral services.
For the first time since 1993, the quantity of gold lending by the world's central banks recorded a decline of 164 tonnes during 2001, according to the annual bullion market report released by London-based gold fields mineral services.
GFMS, a precious metals consultancy, in its updated
analysis on official sector lending, said at the end of 2001
outstanding swaps and deposits of the world's central banks
and official monetary institutions had fallen by 164 tonnes to
4,651 tonnes compared to a revised end-2000 of 4,815 tonnes.
The majority of the decline in lending last year came from countries not inside the European central bank gold agreement and a large part of 164 tonnes came from a handful of central banks outside Europe that were also important sellers of reserves in 2001, the report said. In addition, one other lender of bullion to the market took back a sizeable quantity of gold that it had been providing to the market, it said adding even a small part of the reduction in lending in 2001 was in response to the low leasing rate environment.
The report states that even though all central banks lenders who were interviewed expressed dissatisfaction with the low rates on offer, nearly all of them sought out other means of dealing with the problem than outright withdrawal from the market. For the majority, this involved extending the term of their lending in order to pick up the higher rates available further out along the positively sloped yield curve, it said.
Bureau Report
The majority of the decline in lending last year came from countries not inside the European central bank gold agreement and a large part of 164 tonnes came from a handful of central banks outside Europe that were also important sellers of reserves in 2001, the report said. In addition, one other lender of bullion to the market took back a sizeable quantity of gold that it had been providing to the market, it said adding even a small part of the reduction in lending in 2001 was in response to the low leasing rate environment.
The report states that even though all central banks lenders who were interviewed expressed dissatisfaction with the low rates on offer, nearly all of them sought out other means of dealing with the problem than outright withdrawal from the market. For the majority, this involved extending the term of their lending in order to pick up the higher rates available further out along the positively sloped yield curve, it said.
Bureau Report