As a result, there were a lot of private meetings that were held and the IMF meeting that was held in Washington had a very important statement made. The which was made by the IMF was that there was a strong belief among the signatory central banks that gold would have an important role to play as a monetary asset in the future and this was a very important statement for central banks to use. Secondly, they have also stated that they would not enter the market as sellers of gold over the next five years. Another equally important statement was regarding the lending policy of the banks. The increase in the gold price during this period was also the result of the increase in the net lending of the gold by the central banks. After this price hike, the signatory central banks agreed upon a decision stating that they would freeze their lending operations of gold in the derivatives market. Though the United state was not part of this agreement for various legal reasons, they had an official policy of not to either sell or lend gold. This led to a decrease of 80-90 percent of the official gold stock in the market except for the already approved amount of gold. This led to a significant hike in the prices of the gold. Later, the government and the central banks together took certain actions to stabilize the market and also to calm down fears of huge central bank sales of gold. . Analysis of International Monetary Policy after the Euro Book Written by Robert A. and Mundell, P. J.
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