But regardless of the projects, the aim is always to transfer our excess reserves outside the SNB in order to manage them more effectively than within the central bank and its relatively restrictive framework. On our side, we are not keen about the idea of being in charge of managing a large reserve  BIS Review 73/1999  4  portfolio. We do not wish to wear two hats, one as central bank in charge of monetary policy and that of asset manager for the country. We could run the risk of being caught in the crossfire of criticism when it comes to executing a mandate which is not a part of our basic responsibility. One way or another, the transfer of excess reserves by the SNB to one or several outside entities is not just a simple accounting problem. Even though the National Bank is independent it does not have the legal power to dispose of a part of its own resources for other purpose than monetary policy. Legislative and constitutional steps are necessary and they are currently under way. It is important to have them in mind because they may hold a few surprises. 3. The political process 3.1 First stage: demonetisation of gold The first stage, which aims at demonetising gold, is already well under way. The demonetisation of gold required two legal adjustments: • •  a revision of the Swiss Constitution a revision of the current Coinage Act.
The fact that this precision was introduced at the initiative of our parliament indicates that the Swiss people wish to keep ample gold reserves. Consequently, we do not envisage going beyond the announced plan of selling 1300 tonnes. BIS Review 73/1999  6