Washington Agreement on Gold

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The Washington Agreement on Gold was a gentlemen's agreement among Central Bankers aimed at stabilizing the value of gold reserves. The agreement came in response to concerns on the gold market after the United Kingdom treasury announced that it would be sold, prompting an international outcry.

In 1999, the first version of the Central Bank Gold Agreement (CBGA) was signed on September 26th, stating that "Gold will remain an important element of global monetary reserves." This agreement was followed by a second version in 2004, known as the Déclaration commune sur l'or, which reaffirmed gold's importance in international monetary policy.

The most recent iteration of the CBGA III, signed on September 27th, 2009, brought together central banks from across Europe and beyond. The signatories, including those from Cyprus, Luxembourg, Malta, Austria, Portugal, Slovenia, Slovakia, Finland, Sweden, Switzerland, Belgium, Ireland, Greece, Spain, France, Italy, and the Netherlands, undertook to sell no more than 400 tonnes of gold per year.

This collective effort aimed to prevent a speculative attack on the value of gold reserves. The agreement also ensured that the total sales volume over five years would not exceed 2,000 tonnes. By working together, these central banks sought to maintain stability in the global monetary system and protect the interests of their respective countries.

The Washington Agreement on Gold marked an important step towards cooperation among Central Bankers in addressing common challenges facing the international financial community.