The International Monetary Fund (IMF) said yesterday that it has sold 200 tonnes of gold to the Reserve Bank of India (RBI) to raise $6.7 billion as part of the global lender's strategy to boost its lending resources.
The transaction was carried out in a phased manner during the period from 19 October to 30 October with each daily sale done on the basis of that day's prevailing market prices. The total sale proceeds amount to $6.7 billion or SDR 4.2 billion, IMF's international reserve asset.
IMF managing director Dominique Strauss-Kahn said in a statement, ''I strongly welcome this transaction with the Reserve Bank of India.''
''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,'' Strauss-Kahn added.
Earlier in September, the executive board of the Washington-based lender had approved gold sales of up to 403.3 tonnes, about one-eighth of its holdings, to increase the Fund's resources to boost lending to low-income countries. (See: IMF to sell 403 tonnes of gold to boost lending resources)
The gold sales are expected to help finance a new income model for the IMF, making the 186-member lender less dependent on its lending revenue to cover expenses.