19.04.2004 12:24:00 GMT
Armenia sells its gold reserves

Yerevan. (Interfax) – The Central Bank of Armenia has sold the country’s
gold reserves of about 1.4 tonnes, the Bank told Interfax.

Details of the deal, which took place and the end of last year, are not
being disclosed.

The Central Bank of Armenia’s board decided to sell the reserves because of
the high liquidity on the gold market over the past few years, the Bank’s
press service reported. “The high correlation between gold and the euro
means that even without gold in international reserves the necessary level
of diversification can be maintained and at the same time the yield of
international reserves can be raised,” the Bank said.

In recent years, gold reserves have remained unchanged at around 1,396 kg,
which on October 1 2003 was estimated at $17.1 million (3.65% of Armenia’s
international reserves of $468.7 million). International reserves, already
without gold, totaled $512 million on April 1 2004.