May 23, 2010IMF estimates $5.1-b profit from gold sales in FY’10
WASHINGTON: The International Monetary Fund, which sold gold to member countries including India last year, expects to record a profit of $5.1 billion from sales in the financial year ended April 30, 2010.
Gold sales is a part of the multilateral lending agency’s new income model, mainly aimed at increasing its resources to lend to low-income countries.
The net income in the 2010 financial year (ended April 30) would include “gold profits estimated at about SDR 3.5 billion ($5.1 billion) from part of the limited sale of the fund’s gold,” according to the IMF.
SDR or Special Drawing Rights is an international reserve asset created by the IMF to supplement its member countries’ official reserves. The value of SDR is based on a basket of four key international currencies — the euro, Japanese yen, pound sterling and US dollar.
In its mid-year review, the IMF had estimated that its profits from gold sales would be worth about SDR 3.25 billion. This projection has now been raised to SDR 3.5 billion.
The IMF sold 212 tonnes of gold in October-November, 2009. Out of the total, India purchased 200 tonnes at an estimated cost of $6.7 billion.
http://www.thehindubusinessline.com/blnus/14231502.htm
