IMF says that the possibility of selling gold to face emergencies is on the table

The managing director of International Monetary Fund (IMF), Kristalina Georgieva, pointed out this Tuesday that the possibility of her institution selling gold to face emergencies “It’s on the table”, although there is no consensus on the matter.

“It is a topic where some of our members firmly believe that selling gold is really the last resort in case of an unforeseen emergency. There are many who say ‘let’s sell gold’ and some others who say ‘let’s wait a minute, let’s not rush’”, he said in a meeting at the Center for Global Development.

Georgieva noted that the conversation in this regard is constructive and that the possibility of proceeding with these sales “is on the table.”

The IMF recalls on its website that it is one of the largest holders of gold in the world: it maintains some 90.5 million ounces (or 2,814.1 metric tons) in designated depositaries.

The organization, based in Washington, does not have the power to buy gold or engage in gold transactions, such as loans or leases, but it can sell gold directly at prevailing market prices and accept gold from member countries that repay loans.

These operations must be approved by a majority of 85% of the total number of votes of its Executive Board.

He IMF It has already returned gold to member countries or sold part of its holdings in the past.

For example, as its website highlights, in 1999 its Executive Board authorized operations to sell gold outside the market to help finance the participation of the IMF in the Heavily Indebted Poor Countries (HIPC) Debt Relief Initiative. He then sold 12.94 million ounces of gold in transactions with Brazil and Mexico.

Or in 2009, among others, it approved the sale of 12.97 million ounces, which at the time represented one eighth of its total gold holdings, within the framework of a new revenue model to put its finances on a safe long-term path. term and increase low- or no-interest loans to low-income countries.