Interfax
May 7 2004
Armenia raises $5.6 mln from gold reserves sale
Yerevan. (Interfax) – Armenia raised 3 billion dram (about $5.6
million) in net profit for the country’s budget from the sale of gold
reserves, Central Bank of Armenia Chairman Tigran Sarkisyan told the
press.
Armenia sold its entire gold reserve of 1,396.5 kilograms, estimated
at $17.1 million on October 1 2003 and forming part of the country’s
international reserves, at the end of 2003.
The sale was made in accordance with the international reserve
management strategy and had the approval of the Central Bank of
Armenia board, Sarkisyan said. The Armenian government made
transaction through international dealers when the price of gold
topped $400 per troy ounce.
When foreign debt is double the volume of international reserves,
there is no need for a gold reserve because debt payments are made in
dollars, euros or SDR, Sarkisyan said.
Sarkisyan would not say whether the Central Bank would buy gold again
if international prices dropped.
The Finance Ministry reported that foreign debt on January 1 2004
totaled $1.097 billion and international reserves amounted to $512
million.