IMF sitting on gold reserves of $95 bn

The International Monetary Fund (IMF), which has been authorised by the G-20 leaders to sell gold to assist poor countries, is sitting on reserves of the yellow metal of 3,217 tonnes, valued at $95 billion (about Rs 4.8 lakh crore).

The IMF, the third-largest official holder of gold in the world, has been directed by the G-20 leaders at their recent summit in London to generate additional resources by selling gold to provide $6 billion concessional loans to low-income nations over the next 2 to 3 years.

The United States has the largest official reserves of gold in the world (over 8,000 tonnes), followed by Germany at around 3,400 tonnes.

According to the IMF, the market value of its 103.4 million ounces (3,217 tonnes) of gold was $95.2 billion as on February 20, 2008. The IMF has also been directed by G-20 leaders to come up with concrete proposals for gold sale at the spring meetings to be held in Washington on April 25-26.

The proposal to sell 403.3 tonnes of the Fund's gold, said IMF Survey online, was agreed on last year as part of a plan to bolster the income of the multilateral organisation.

The decision, it added, would require the support of 85 per cent of the Fund's executive board, in addition to legislative action by several member countries, including the United States.