Why has the IMF decided to sell gold?
• The strictly limited sales of Fund gold approved by the Executive Board will help put the financing of the IMF on a sound long-term footing, and also help to boost the Fund’s capacity to provide concessional loans to low income countries. • New income model: an endowment funded with the profits from gold sales is a central component of the new income model that the Board endorsed in April 2008. The new income model would provide more diverse income sources that are better aligned with the variety of functions performed by the Fund. • Concessional lending: Resources linked to the gold sales will also be used indirectly to increase the Fund’s capacity to provide concessional loans to low income countries.
