How Much Gold Does the IMF Have?

IMF holds approximately 90.5 million ounces of gold at designated depositories, acquired since 1946 through Members’ initial and increased subscriptions, gold swaps and other transactions.

In April 1978, the IMF’s Articles, By-Laws, and Rules underwent a major revision, during which Rule E-1 was altered to become Rule F-1.

How much is the IMF’s gold?

The IMF currently holds approximately 90.5 million ounces of gold valued on its books at roughly $50 an ounce, acquired through initial quota payments and increase payments. When first proposed to use IMF gold to finance part of its enhanced Heavily Indebted Poor Countries debt relief initiative, gold producing countries and firms were alarmed at potential negative market consequences; instead, this resource generation process took place through complex opaque book transactions at the IMF instead.

In February 2012, the IMF’s Executive Board authorized on-market sales of some gold in order to raise resources to maintain low-income country subsidized interest rates on program lending from IMF programs. Proceeds of such sales would then be divided among members according to their quotas with an expectation that each would transfer his/her share directly or make equivalent new contributions directly into Poverty Reduction and Growth Trust (PRGT).

Is the IMF planning to sell its gold?

IMF values its gold at market prices and any sales proceeds would be recorded as profits in its books. Sales must meet strict conditions intended to safeguard against disrupting the gold market.

In 2009, the Executive Board authorized a limited series of on-market gold sales under these modalities, with proceeds used to increase capacity to provide low-income country lending (see IMF Press Release No. 09/268).

The United States is the biggest official holder of IMF gold, accounting for more than one-quarter of total holdings. Therefore, it is crucial that it supports modest IMF gold sales to advance growth and poverty reduction across Africa and LICs while creating a more stable global financial environment – an announcement of such sales should have an immediate effect on strengthening dollar against major currencies.

What is the IMF’s gold policy?

The IMF is an international institution that provides loans, policy consultation, education and reserves of precious metals such as gold to countries worldwide. Furthermore, they maintain an official gold reserve which ranks among one of the world’s largest official holders.

Since 1944, when the Fund was first created, its members paid part of their quota subscription in gold as collateral or sold it back into the Fund. This practice led to its current holdings of 90.5 million ounces of precious metals.

Rule E-1 of the IMF stipulates that at least a majority of its official reserves must be held in depositories designated by its members. At present, gold deposits of the Fund are held in New York, London, Shanghai and Bombay but these do not function as stand-in IMF depository accounts – they simply refer to central bank accounts with gold vaulting or storage capabilities that provide for deposits to the Fund. Over the past 20 years the IMF tapped its gold twice for debt relief to low income countries using an internal procedure without disrupting gold markets – both sales involved internal procedures that ensured minimal market disruptions were followed during sales of gold markets.

What is the IMF’s gold reserve?

As part of its founding principles in 1944, countries agreed to pay part of their fees in gold until the 1970s. Although still held by the IMF today, its gold has yet to be put to good use; according to Rishikesh Ram Bhandary and Marina Zucker-Marques at Boston University’s Global Development Center they recommend that some be sold off to fund debt relief for low-income countries affected by climate-related disasters.

IMF Gold Depositories can be found in New York, London, Shanghai and Bombay. When its first members joined, they were required to make initial quota payments in gold as part of their reserves deposits with one of these depository banks. In April 1978 however, following changes in international economic trends including a move away from linking currencies directly with gold as well as its reduced role in international finance, this amendment amended Rule F-1 governing gold depositories to reflect this shift away.