Why does the IMF hold gold and what is IMF policy on gold sales?
In addition to the limitations set forth in the IMF’s Articles of Agreement, the IMF’s policies on gold are guided by the following five principles: • The IMF has a systemic responsibility to avoid causing disruptions that would adversely impact gold holders and gold producers, as well as the functioning of the gold market. • As the only asset with significant unrealized value, gold provides fundamental strength to the IMF’s balance sheet. Any mobilization of IMF gold should avoid weakening its overall financial position. • Gold holdings provide the IMF with operational maneuverability both as regards the use of its resources and by adding credibility to its precautionary balances. In these respects, the benefits of the IMF’s gold are passed on to the membership at large, including both creditors and borrowing members. • The IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies. • Profi
