Geneva - European central banks have extended a cap on gold sales for another five years but changed the ceiling to 400 tons per year, a joint statement announced. The previous agreement, which allowed for 100 more tons a year, was set to end on September 27. The new one would be reviewed in five-years time.

In all, 19 central banks, including the European Central Bank, signed the agreement. The other banks include those of: Belgium, Germany, Ireland, Greece, Spain, France, Italy, Cyprus, Luxembourg, Portugal, Slovenia,Slovakia, Malta , the Netherlands, Austria, Finland, Sweden and Switzerland.

The statement also recognized the International Monetary Fund's plan to sell off gold.

"The signatories recognise the intention of the IMF to sell 403 tons of gold and noted that such sales can be accommodated within the above ceiling," the statement said.

The Swiss National Bank said in an accompanying message that it had no plans for any further gold sales in the foreseeable future.

"With gold holdings amounting to 1,040 tons, it holds a substantial part of its currency reserves in the form of gold," the SNB said.

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