IMF Executive Committee Endorses Gold Sales

Source:

The Executive Board of the International Monetary Fund Monday endorsed a new income framework for the IMF, which would permit the agency to sell up to 403.3 tonnes (nearly 13 million ounces) of its gold holdings to create an endowment to support the organization.

The Executive Board of the International Monetary Fund Monday endorsed a new income framework for the IMF, which would permit the agency to sell up to 403.3 tonnes (nearly 13 million ounces) of its gold holdings to create an endowment to support the organization.

The IMF holds 103.4 million ounces of gold at designated depositories. Meanwhile, the IMF's total gold holdings were valued at $95.2 billion as of February 20, 2009, according to the agency...

Under the plan approved Monday, the IMF could sell nearly 13 million ounces of gold for about $11 billion over the next several years, keeping $4.4 billion on its book and placing the remaining $6.6 billion in an investment account...

With the upcoming presidential and congressional elections in November, any IMF gold sales proposal may not be considered until 2009 under a new administration and a new Congress. An unidentified senior IMF official told Dow Jones Monday that the IMF would coordinate the sales with central banks to prevent any market disruptions.

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