IMF concludes gold sales

The International Monetary Fund (IMF) announced the conclusion of limited sales programme covering 403.3 metric tonnes of gold that was approved by the Executive Board in September 2009.

These sales are a central element of the new income model for the IMF that was endorsed by the Executive Board in April 2008. They will also increase the Fund’s capacity to support low-income countries under a strategy endorsed by the Board in July 2009.

The gold sales were conducted under modalities to safeguard against disruption of the gold market. All gold sales were at market prices, including direct sales to official holders.

There were no immediate details of the final sale, but the IMF has previously announced the sale of 200 metric tonnes to India, ten tonnes to Mauritius, ten tonnes to Sri Lanka and ten tonnes to Bangladesh.

The sale to those countries was said to be around $7.6 billion. IMF members agreed in 2008 that the fund could sell an eighth of its gold assets in order to diversify its financial modelso that it no longer relies on lending. The fund is one of the world’s largest holders of the precious metal.

The IMF held 93.8 million ounces (2,917.1 metric tonnes) of gold at designated depositories at end July 2010. The IMF’s total gold holdings are valued on its balance sheet at $5.9 billion on the basis of historical cost. As of July 31, 2010, the IMF’s holdings amounted to $109.6 billion at current market prices