IMF sells 200 tonnes of gold to India

November 03, 2009 02:02:12 PM

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The International Monetary Fund announced Monday the sale of 200 tonnes of gold to India's central bank, nearly half the amount targeted for sale over the coming years to shore up IMF finances.

The total sales proceeds are equivalent to 6.7 billion dollars, the IMF said.

The sale represents almost half of the 403.3 tonnes of IMF gold approved for sale by the institution's executive board in September.

Under the fund’s Articles of Agreement, all gold sales must be based on market prices.

"I strongly welcome this transaction with the Reserve Bank of India," Dominique Strauss-Kahn, the IMF managing director, said in a statement.

"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."

The 186-nation institution announced on September 18 that the gold sales would be conducted in such a way as to safeguard disruption of the gold market.