(RTTNews) - The International Monetary Fund (IMF) on Monday announced the sale of 200 metric tons of gold to the Reserve Bank of India (RBI). The amount of gold being sold represents almost half of IMF’s total sales volume of 403.3 metric tons that was approved by the Executive Board in September.

IMF Managing Director Dominique Strauss-Kahn said the transaction with the RBI was an important move in achieving the objectives of IMF’s limited gold sales program, which includes increasing concessional lending to the poorest countries.

The transaction, which is being settled, involved daily sales phased over a two-week period during October 19-30, with each daily sale conducted at a price set on the basis of market prices prevailing that day. The total sales proceeds are equivalent to $6.7 billion.

As per IMF’s Articles of Agreement, all gold sales must be conducted at prices based on market prices, including direct sales to official holders as in the case of this transaction.

IMF intends to sell the remaining of the 403.3 metric tons of gold in a phased manner over time and inform markets before any on-market sales commence and will report to public on the progress with gold sales regularly.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved

Posted in Categories: Economy, Releases, Stocks.

Subscribe by RSS Subscribe by Email