Day 2 - 5 May 2011

Day 1 - 4 May 2011 Day 2 - 5 May 2011 Day 3 - 6 May 2011

Effective management of central bank gold reserves

Case Study: why do central banks hold gold?
Led by Chairman
The return of central banks as active purchasers in 2009 underscored the important role gold continues to play in official sector holdings. More than 100 central banks hold bullion and at the start of 2010 gold made up an impressive 25% of G10 reserves by value. Today, central banks continue to see value in these holdings, although a variety of sophisticated financial products exist. Why? In this session delegates will share some of their thoughts about the reasons central banks continue to hold gold and the challenges and opportunities that the asset class presents.

Break

Trading strategies in a low lease rate environment
Michael Paprotta, Assistant Director, Foreign Exchange and money markets, Swiss National Bank

Practicalities of gold ownership - accounting for gold
Friedrich Karrer, Director Accounting Department, the National Bank of Austria

  • Recognition of gold transactions (physical gold, unallocated gold, investments in gold)
  • Valuation of gold reserves in a central bank, treatment of revaluation differences
  • International central bank practice relating to accounting for gold
  • Gold accounting under IFRS
  • Material management in sub account ledgers for gold bars
  • Accounting issues in central banks for numismatic and nonmonetary gold holdings

Lunch

How central banks use gold: two case studies

Break

Using gold to hedge tail risk
Natalie Dempster Director, Government Affairs, World Gold Council

This session will examine how gold can help hedge against "fat tail" events. It will discuss gold's role as a high quality liquid asset during times of markets stress, examining in detail the size and depth of the gold market.

Breakout sessions: Reappraising the place of gold in reserve management
Led by Chairman
As the closing session of the day delegates will split into three groups to apply the knowledge that they have built up over previous sessions to critically assess the extent to which their portfolios need to be balanced between foreign exchange, gold and alternative investments. Observations and conclusions will be presented at a reporting-back session the following morning.

Chairman's closing remarks

Formal dinner at Xian Qiang Fang

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