The Concept of the Washington Agreement Was Introduced by

The concept of the Washington Agreement was first introduced by a group of prominent central banks in 1999. These banks included the Federal Reserve Bank of New York, the Bank of Canada, the European Central Bank, and the Bank of Japan.

The Washington Agreement was created in response to concerns about the rapid decline in gold prices in the late 1990s. The agreement was designed to limit the amount of gold that central banks could sell in a given year, in an effort to stabilize the market and prevent further declines in prices.

Under the terms of the agreement, the signatory central banks agreed to limit their gold sales to no more than 400 tonnes per year. The agreement was initially set to expire after five years, but has been repeatedly renewed since then, most recently in 2014.

The Washington Agreement has been credited with helping to stabilize the gold market and prevent further declines in prices. However, it has also been criticized for limiting the ability of central banks to manage their gold reserves in response to economic conditions.

Despite these criticisms, the Washington Agreement remains an important mechanism for managing the global gold market. It serves as a reminder of the complex interplay between central banks, markets, and economic conditions, and highlights the challenges faced by policymakers in managing these dynamics.