UPDATE 1-IMF sells 10 tonnes of gold to Bangladesh

Thu Sep 9, 2010 10:34pm GMT
 

(adds details, analysis, market reaction, background)

WASHINGTON, Sept 9 (Reuters) - The International Monetary Fund said on Thursday it sold 10 metric tonnes of gold to the central bank of Bangladesh on Sept. 7, using Tuesday's market prices for the transaction.

The IMF said the sale raised $403 million, adding that it was part of 403.3 tonnes approved for sale by its executive board in September 2009.

The sales are part of plans adopted last year to diversify the fund's sources of income and to increase low-cost lending to poor countries by up to $17 billion through 2014.

The IMF fund has already sold 212 tons of gold to the Reserve Bank of India, the Bank of Mauritius and the central bank of Sri Lanka, all in November last year.

Thursday's sale is the first to a central bank since last November's sales.

In a statement, the IMF said that at the end of July a further 88.3 tonnes had been sold through on-market sales that it announced in February.

An uncertain outlook for two of the world's major reserve currencies --the dollar and the euro -- is seen providing a spur for central banks to buy gold.

Earlier this year there were reports China was prepared to buy gold from the IMF, though those reports were disavowed.   Continued...

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