GATA distributes national press release about Calandra''s interview with Veneroso

10:39p ET Tuesday, September 30, 2003

Dear Friend of GATA and Gold:

Today Allianz Dresdner's Frank Veneroso, in his first
interview in four years, told the financial world,
through CBSMarketWatch's Thom Calandra, that the gold
market is being rigged by central banks as part of a
broader program of currency intervention.

This afternoon's Reuters story, appended here, about
today's intervention in the currency markets by the
Bank of Japan -- unusual because it was conducted
through the Federal Reserve Bank of New York --
suggests that others are getting wise to the
desperation afoot, that the program of currency
intervention may be meant less to weaken the yen
than to support the dollar, that the real perpetrator
of this intervention is the U.S. government, and that
the central bankers were so frightened of the dollar's
weakness today (and the corresponding rise in the
price of gold) that they couldn't wait even a few
hours for the sun to come up over Tokyo.

Note particularly the third-to-last and the second-to-last
paragraphs of the Reuters story below.

U.S. Treasury Secretary John Snow says the U.S.
government wants foreign exchange rates to be set by
the free market -- and only hours later the New York Fed
is helping the Bank of Japan to rig them.

Of course this is old hat to GATA supporters. What's
important is that the rigging is getting so obvious that
even some financial managers and journalists are
catching on, and the rig won't be worth anything when
everybody finds out about it.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Japan finance ministry sold yen for dollars via NY Fed

By John Parry
3:21p ET Tuesday, September 30, 2003

a href=http://biz.yahoo.com/rf/030930/markets_yen_4.htmlhttp://biz.yahoo.com/rf...

NEW YORK (Reuters) -- Japan's Ministry of Finance sold
yen for dollars on the foreign exchange markets on
Tuesday, a ministry official said, acting through the U.S.
Federal Reserve in a move that jolted the dollar sharply
higher.

quot;Today we have conducted intervention through the New
York Federal Reserve Bank. It is dollar buying and yen
selling,quot; the ministry official said.

It is quite unusual for the New York Fed to step in on
behalf of foreign central banks as it did on Tuesday.
The New York Fed declined to comment when asked
whether it was intervening, as is the U.S. central bank's
standard procedure.

The change of tack from Japan's MoF -- which of late
has not announced interventions at the time of taking
action -- sent an electric shock through currency
markets, delivering a message that the Bank of Japan
is keen to defend a new quot;line in the sandquot; below which
Japan aims to prevent the dollar weakening against
the yen, traders said.

quot;Below 110 yen, the BoJ (would have) got very nervous.
The BoJ's action allows it to re-peg the dollar between
111-115. But it would be very hard to put it back up to
115 yen,quot; said Philip Capone, senior trader at Fortis
Bank in New York.

The Bank of Japan acts on behalf of the Ministry of
Finance in the event of currency market interventions.

The decision of the ministry to declare it had undertaken
intervention on the same day as it occurred breaks with
the approach the Japanese government had adopted for
several months of declining to comment.

quot;It reminds us that the BoJ is still going to be a presence
in the market and that they are willing to shift tactics to
remind people of that,quot; said Daniel Katzive, foreign
exchange strategist with UBS in Stamford, Connecticut.
The BoJ quot;felt they had to so something a bit more
dramatic,quot; he said.

The intervention also added a new twist to the fallout
since the Group of Seven of industrialized nations,
which includes Japan, called for more flexibility in
exchange rates in a joint communique just 10 days
ago.

For a long period, the BoJ defended the level of 115.0
yen to the dollar in its yen-weakening intervention.
But those efforts seemed to end earlier this month
when the dollar slipped decisively below that mark.

Earlier on Tuesday, the dollar had fallen to a three-year
low of 110.12 yen before leaping more than 1 yen in a
matter of minutes as rumors of central bank intervention
flew.

On Tuesday afternoon in New York, the dollar was buying
111.42 yen, up 0.5 percent on the day and steeply higher
than its three-year troughs hit shortly before the
intervention kicked in.

Japan may have been forced to intervene because the
dollar was being broadly punished following
weaker-than-expected U.S. economic data.

quot;It looks increasingly likely that 110 (yen) is the new
line in the sand,quot; said Ian Stannard, foreign exchange
strategist at BNP Paribas in London.

quot;There is going to be this ongoing risk of unpredictable
BoJ activity. That should keep the risk a bit more
symmetricalquot; in the trading of the dollar against the
yen, said Katzive.

Some currency analysts said Japan's yen-weakening
interventions, coming so soon after the Group of Seven's
communique on Sept. 20th calling for more flexibility in
exchange rates was a de-facto rebuke to that statement.

In foreign exchange markets, the G7 statement was widely
viewed as pressuring China and Japan to desist from
artificial efforts to weaken their respective currencies.

quot;This makes a mockery of the G7 statement,quot; said Neal
Kimberley, senior foreign exchange manager at Bank of
Tokyo-Mitsubishi in London.

Other strategists said Tuesday's intervention efforts,
reinforced by the Japanese confirmation, reflect some
concern by the U.S. government to check the dollar's
descent.

quot;What this (Japan's action) also implies is that the U.S.
Treasury will not allow the dollar to collapse,quot; said
Capone.

A U.S. Treasury Department official declined on Tuesday
to comment on movements in the dollar.

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----------------------------------------------------

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