News Brief: IMF Completes Second Off-Market Gold Sale

December 21, 1999

IMF Completes Second Off-Market Gold Sale

As part of the previously announced financing for debt relief and financial support for the world's poorest nations (see News Brief No. 99/62), the International Monetary Fund (IMF) completed the second off-market gold sale on December 17, 1999.

"We sold slightly more than 655,000 ounces of gold to Mexico and accepted it back immediately from Mexico for payment of an obligation due the same day," said IMF Treasurer Eduard Brau. "As planned for this transaction and all gold transactions, the gold did not enter the market." The IMF retained about SDR 23 million on its own account as required by the Articles of Agreement. The remainder of the proceeds-SDR 111 million (about US$ 152 million)-was invested with the Bank for International Settlements to generate income for the Heavily Indebted Poor Countries (HIPC) Initiative.

"Our profits from the two gold sales so far has reached SDR 1.3 billion," Mr. Brau said. "Similar transactions are planned in the coming months with Mexico, until we reach the targeted amount of SDR 2.226 billion in profits."


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