## Gold in the IMF

## Source details

**Canonical URL:** [Gold in the IMF](https://www.imf.org/en/about/factsheets/sheets/2022/gold-in-the-imf)

## Other formats

- [Markdown version](/en/about/factsheets/sheets/2022/gold-in-the-imf/index.md)
- [Structured JSON version](/en/about/factsheets/sheets/2022/gold-in-the-imf/index.json)
- [Bundle manifest](/en/about/factsheets/sheets/2022/gold-in-the-imf/bundle-manifest.json)

## Bibliographic details
- Published: September 16, 2022

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### Role and holdings
- The IMF holds around 90.5 million ounces (or 2,814.1 metric tons) of gold at designated depositories.
- Gold played a central role in the international monetary system when currency rates were linked to the price of gold; the fixed currency system ended in 1973, diminishing gold’s role.
- The IMF is one of the world’s largest official holders of gold.

### How the IMF acquired its gold holdings
- Until the early 1970 s, the IMF acquired its gold holdings through four main channels:
  - At the IMF’s founding in 1944, member countries paid 25 percent of their initial quotas in gold; they did the same with quota increases over the next three decades. These payments represent the largest source of the IMF's gold.
  - Members normally paid all interest owed on IMF credit in gold.
  - Members also could use gold to repay credit extended by the IMF.
  - Members seeking to acquire another member’s currency could do so by selling gold to the IMF, as South Africa did in 1970–71.

### Ending the gold standard and legal constraints
- Under the Second Amendment to the Articles of Agreement, passed in April 1978:
  - The IMF has no authority to buy gold or engage in gold transactions such as loans, leases, swaps, or use gold as collateral.
  - The IMF may sell gold outright according to prevailing market prices and may accept gold from member countries repaying loans, using an agreed price based on current market prices.
  - Such transactions require IMF Executive Board approval by an 85% majority of the total voting power.
- With inflation rising and a gold run looming, President Richard Nixon's team enacted a plan that ended dollar convertibility to gold and implemented wage and price controls, which soon brought an end to the Bretton Woods System.

### How the IMF has used and sold gold
- Between 1957–71, the IMF sold gold on several occasions to replenish its holdings of currencies.
- During 1956‒60, some IMF gold was sold to the United States and invested in US Government securities to offset operational deficits.
- 1999:
  - The IMF Executive Board authorized off-market gold sales to help finance the IMF’s participation in the Heavily Indebted Poor Countries (HIPC) Initiative.
  - Ultimately, the IMF sold 12.94 million ounces of gold in transactions with Brazil and Mexico.
- 2009–2010:
  - In 2009, the IMF Executive Board approved the sale of 12.97 million ounces of gold — one-eighth of the IMF’s total holdings of gold at that time.
  - The sale was part of a new income model to put the IMF’s finances on a secure long-term footing and increase low- or no-interest lending to low-income countries through the Poverty Reduction and Growth Trust (PRGT).
  - The sale began in October 2009 with off-market transactions with central banks and other official holders at market prices.
  - In February 2010, the IMF announced it would conduct market sales over several months to avoid market disruptions.
  - The IMF concluded its sales in December 2010.
- Financial outcomes and distributions:
  - The IMF’s profits over the book value of the gold amounted to SDR 6.85 billion.
  - With these windfall profits, the IMF Executive Board approved in February 2012 a first distribution of SDR 700 million to members, which became effective in October 2012.
    - The distribution was subject to assurances that at least 90 percent of the amount would flow to the PRGT.
    - As of end-August 2022, nearly 90 percent of the distribution had been transferred to the PRGT.
  - The Executive Board approved in September 2012 the second distribution of SDR 1,750 million of reserves from windfall gold sales profits, which became effective in October 2013.
    - As of mid-August 2022, 90 percent of the amounts distributed had been provided to the PRGT.
  - The distributions of gold windfall profits were a key factor in increasing loans to the poorest countries through the PRGT.

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## References

- [voting power](https://www.imf.org/en/About/executive-board/members-quotas)
- [Heavily Indebted Poor Countries (HIPC) Initiative](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/16/11/Debt-Relief-Under-the-Heavily-Indebted-Poor-Countries-Initiative)
- [the sale of 12.97 million ounces of gold](https://www.imf.org/en/News/Articles/2015/09/14/01/49/pr09310)
- [new income model](https://www.imf.org/en/News/Articles/2015/09/28/04/53/sonew040708a)
- [Poverty Reduction and Growth Trust (PRGT)](https://www.imf.org/en/About/Factsheets/IMF-Support-for-Low-Income-Countries)
- [first distribution of SDR 700 million to members](https://www.imf.org/en/News/Articles/2015/09/14/01/49/pr1256)

_Source: https://www.imf.org/en/about/factsheets/sheets/2022/gold-in-the-imf_