IMF Sells 10 Tons of Gold to Sri Lanka
The International Monetary Fund (IMF) to sell 10 tons of gold to Sri Lanka’s central bank for USD375 million as part of the restructuring of the IMF’s financial resources.
This is the third IMF gold sales in a month later. The reason, in order to reduce dependence on income and increase financial lending amid the global economic crisis.
The price of gold has reached record highs on the day, which is recorded USD1.170 per ounce. Since then, precious metals prices rise higher and become a safe investment for the investors as a haven amid economic uncertainty.
Total sales of IMF gold to central banks reached 212 tons. India recorded 200 tonnes of gold bought between October 30 and 19 valued at $ 6, 7 billion. Mauritius and bought two tons on November 11, valued at USD71, 7 million.
While Sri Lanka has a 20-month term loan to the IMF for $ 2, 7 billion provided in July after the island nation reserves plunged more than $ 1 billion because the government has made the final assault to crush the Tamil Tiger separatist rebels.
Sri Lanka central bank in early November said that the purchase is made of gold to diversify reserves the volatile currency market amid the turmoil. Yet it refuses to disclose where the bank could buy gold.
In addition, the IMF Executive Board has approved the sale of 403.3 tons of gold in September. The IMF currently holds approximately 3,000 tons of gold, and became the official holder of the precious metal’s third largest after the United States and Germany.
For information, the price of gold and other commodities surged in recent months amid the decline of the dollar. For investors, the metal support for the surge of inflation concerns, such as gold is considered a safe investment.
The IMF also said it would sell gold directly to the central bank and other official holders in the early period before selling the remaining amount on the open market. These sales will be conducted gradually from time to time, in line with the approach used by the central bank to avoid market disruptions.
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