Sam Edmonds: German Gold Reserves Off-Limits to Foreigners

Germany completely rejects the G20 proposals that would see national central banks "contribute" reserves to an IMF-backed vehicle designed to boost the financial firepower of the euro-zone rescue war chest: Bottom Line: Germany will not allow gold reserves held by its central bank, the Bundesbank, to be used to bolster the rescue fund for indebted euro-zone countries, Economy Minister Philipp Roesler said on Monday. "German gold reserves must remain untouchable," Roesler said in an interview with ARD public television Monday morning, rejecting a proposal reportedly put forward by France, Britain and the United States at last week's G20 meeting in Cannes. Roesler's comments echoed a statement made Sunday by government spokesman Steffen Seibert, when he dismissed two German newspaper reports that said some G20 leaders wanted the Bundesbank to sell about 15 billion euros ($20.6 billion) of its gold reserves, which are worth an estimated total of 139 billion euros. "Germany's gold and foreign exchange reserves, administered by the Bundesbank, were not at any point up for discussion at the G20 summit in Cannes," Seibert said. Seibert did, however, confirm that some G20 delegates suggested that the International Monetary Fund could issue more Special Draw- ing rights (SDR), an international reserve asset created in 1969, and based on a basket of inter-national currencies, to help increase the firepower of the European Stability Facility (EFSF).