Reply #16: IMF could sell gold to help poor countries [View All]

[UpInArms]

http://www.sundaytimes.co.za/zones/sundaytimesNEW/business/business1112272664.aspx

IMF head Rodrigo Rato said that the fund could sell part of its gold reserves to finance debt relief for poor countries without destabilising the market.

The IMF's undervalued gold should be used in an "efficient way", and this would be to sell it on the market rather than through a book-keeping exercise to revalue part of the reserves, Rato told the Financial Times.

The International Monetary Fund had 3,217 tons of gold in its reserves with a market value of 45 billion dollars, the FT said. In August the fund officially valued its gold reserves at 8.5 billion dollars.

"Once we have to be an actor in the market, we would need to respect the way the market is functioning. That would be to the advantage of everybody, the producers but also the fund," Rato said.

...more...