Wednesday, November 25, 2009

Sri Lanka's Central Bank Buys 10 Tonnes of IMF Gold

By Agence France-Presse
via Yahoo News
Wednesday, November 25, 2009

WASHINGTON -- The International Monetary Fund said Wednesday it had sold 10 tonnes of gold to Sri Lanka's central bank for $375 million, as part of a restructuring of IMF financial resources.

It was the third IMF sale of gold in a month as the Washington-based institution, the world's third-largest official holder of the precious metal, seeks to reduce its dependence on lending revenue and bolster its finances amid the global economic crisis.

The IMF said the sale to the Central Bank of Sri Lanka was based on the market prices prevailing Monday.

On November 2, the IMF sold 200 tonnes of gold to India's central bank for $6.7 billion, then sold two tonnes of gold to Mauritius on November 16 for $71.7 million.

The IMF executive board approved in September the sale of 403.3 tonnes of gold. The fund, which currently holds roughly 3,000 tonnes of gold, is the third largest official holder of the precious metal after the United States and Germany.

The IMF said it would sell gold directly to central banks and other official holders for an initial period before selling the remaining amount on the open markets "in a phased manner over time."

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