IMF sells 200 tonnes gold to Reserve Bank of India

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IMF sells 200 tonnes gold to Reserve Bank of India

November 3, 2009 – The International Monetary Fund has sold 200 tonnes of gold to the Reserve Bank of India,
representing almost half of the total sales volume of 403.3 tonnes approved by the Executive Board in September.“I strongly welcome this transaction with the Reserve Bank of India,” Managing Director Dominique Strauss-Kahn said in a statement.
“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.”
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 revailing that day.
The total sales proceeds are equivalent to US$ 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 his transaction.
As previously indicated, the Fund will inform markets before any on-market sales commence, and will report
regularly to the public on progress with the gold sales.

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