IMF to shortly begin open market sale of 191.3 mt gold

The International Monetary Fund said it will shortly begin selling gold in the open market under its gold sales programme, which was launched last year to raise more money for lending.

The International Monetary Fund (IMF) on Thursday said it will shortly begin selling gold in the open market under its gold sales programme, which was launched last year to raise more money for lending.

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In September last year, the IMF had decided to sell 403.3 metric tonnes of gold to raise money to fund poverty alleviation projects in the third world countries.

The total amount remaining to be sold in this phase is 191.3 metric tonnes.

Until now the Fund has sold 212 metric tonnes of gold but it was limited to central banks. The Indian central bank had purchased 200 tonnes of gold last year while Sri Lanka and Mauritius were the other purchasers.

The IMF said the 'on-market' sales will be conducted in a phased manner over time to prevent any disruptions to the gold market.

However, the IMF said the initiation of the on-market sales does not preclude further off-market gold sales directly to interested central banks or other official holders.