Finance Ministers from industrialised and developing countries have been meeting in Paris this week for talks to try and reach agreement on the role of gold in World monetary reform.
GV EXT International Conf. building
GV Ministers seated Group 10 conf.
SV France, Germany, Japan & Ital delegates seated(4 shots)
GV INT Conf.
GV EXT Int. Conf. building
GV Delegates seated around table--Group 24 (5 shots)
Initials BJB/0215 BJB/0225
Script is copyright Reuters Limited. All rights reserved
Background: Finance Ministers from industrialised and developing countries have been meeting in Paris this week for talks to try and reach agreement on the role of gold in World monetary reform.
The International Monetary Fund (I.M.F.) and its Group of Ten and Group of Twenty-Four have been attempting to reach a compromise on the issue that has found the United States and France directly opposed.
The U.S. wants the I.M.F. to keep its gold stock, while the French want it returned to the countries who paid it in at the current official price of 42.22 dollars an ounce -- a quarter of the free market value. They would then be able to resell the precious metal at a huge profit.
Another major point of disagreement is whether central banks should be able to buy gold at free market prices -- America says "yes", France "no".
Another point of Franco-American disagreement is the future of floating exchange rates. The U.S. Argues they should be recognised as a normal part of the monetary system but France says the aim should be a return to fixed parities.
With the conference drawing to a close, the guarded optimism that marked its opening on Monday (9 June) has been lost.