IMF to sell 191.3 tons of gold

The International Monetary Fund (IMF) announced on Wednesday it was ready to sell 191.3 tons of gold on the market in a bid to raise new resources for lending.

The fund “will shortly initiate the on-market phase of its gold sales program” of a total 403.3 tons approved for sale in September 2009, the Washington-based institution said in a statement.

The sale of the full 403.3 tons would reduce the IMF’s gold holdings by about one-eighth.

Until now, a total of 212 tons of gold was sold to the central banks of India, Mauritius and Sri Lanka.

“The top priority in conducting the gold sales is to avoid disruption to the gold market,” said Andrew Tweedie, director of the IMF’s Finance Department. “Prior to any sales on the gold market, sales were first made exclusively to interested central banks, thus shifting gold within the official sector. Now the IMF will begin sales of the remaining gold on the market. This will be done in a phased way.”

“The initiation of on-market sales does not preclude further off-market gold sales directly to interested central banks or other official holders,” the IMF said in a statement.