Sale of gold

The Czech National Bank ("CNB") has sold some 31 tonnes of gold during last week. When deciding on the sale of part of the gold reserves, the Board of CNB has argued that the size of gold in CNB's reserves did not correspond to the targets of holding foreign currency reserves. This sale is a continuation of an operation announced on 5 March 1998.

Current sale will be settled and reflected in the CNB's balance sheet as of 15 September 1998.

After the settlement of this sale, CNB's gold reserves will be at 14 tonnes, 5 tonnes of which treated separately as the so called "Gold of the Slovak state".

Apart from its own gold reserves, CNB also manages 4 tonnes of gold of the National Bank of Slovakia, which CNB withholds in relation to the unresolved questions of division of the balance sheet of the former State Bank of Czechoslovakia.

CNB - M. Švehla