Press Release: IMF Announces Sale of 200 metric tons of Gold to the Reserve Bank of India
IMF News, November 2, 2009
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- Published: November 2, 2009
Transaction details
- The International Monetary Fund announced the sale of 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 (see Press Release No. 09/310).
- The transaction was in the process of being settled and involved daily sales phased over a two week period during October 19-30, 2009.
- Each daily sale was conducted at a price set on the basis of market prices prevailing that day.
Financial proceeds and pricing
- Total sales proceeds are equivalent to US$ 6.7 billion or SDR 4.2 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 this transaction.
Objectives and rationale
- Managing Director Dominique Strauss-Kahn: “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” (see Press Releases No. 08/74 and No. 09/268).
Modalities and market conduct
- The Executive Board adopted modalities for the gold sales consistent with previously established guidelines, emphasizing the guiding principle of avoiding disruption of the gold market.
- Initial period: the Fund is standing ready to sell gold directly to central banks and other official holders that may be interested.
- Thereafter: any amounts remaining from the 403.3 tons would be sold on-market in a phased manner over time, following the approach adopted by central banks participating in the Central Bank Gold Agreement.
- The Fund will inform markets before any on-market sales commence and will report regularly to the public on progress with the gold sales.
Press Release No. 09/381, November 2, 2009.