The International Monetary Fund (IMF) has agreed to sell 200 metric tons of gold to the Reserve Bank of India. This amount represents almost half of the total sales volume of 403.3 metric tons that was approved by the executive board in September.
Dominique Strauss-Kahn, managing director at IMF, said: “I strongly welcome this transaction with the Reserve Bank of India. This transaction is an important step toward achieving the objectives of the IMF’s limited gold sales program, 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.”
The transaction, which is in the process of being settled, involved daily sales that were phased over a two week period during October 19-30, 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 $6.7 billion. Under the fund’s articles of agreement, all gold sales must be conducted at prices based on market prices, including direct sales to official holders as in the case of this transaction.
