The International Monetary Fund (IMF) has announced the sale of 200 metric tonnes of gold to the Reserve Bank of India. This amount represents almost half of the total sales volume of 403.3 metric tonnes approved by the IMF in September 2009.
"This transaction is an important step toward achieving the objectives of the IMF’s limited gold sales programme, which are to help put the Fund’s finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries,” said Dominique Strauss-Kahn, managing director of the IMF.
The transaction, which is in the process of being settled, involved daily sales that were phased over a two-week period during October 19 to 30, 2009, with each daily sale conducted at a price set on the basis of market prices prevailing that day. The total sales proceeds are equivalent to US$ 6.7 billion.
In accordance with the guiding principle of avoiding disruption of the gold market, the IMF’s executive board adopted modalities for the gold sales consistent with guidelines it had earlier established. In particular, the Fund is standing ready for an initial period to sell gold directly to central banks and other official holders that may be interested in such sales. Thereafter, on-market sales of any amounts remaining from the 403.3 tonnes would be conducted in a phased manner over time, following the approach adopted successfully by central banks participating in the Central Bank Gold Agreement.
