11-03-2009, 09:00 PM
<b>India's central bank buys 200 tons of IMF gold for $6.7 billion</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->HONG KONG (MarketWatch) -- India's central bank confirmed Tuesday it had purchased 200 tons of gold bullion from the International Monetary Fund, effectively boosting its holdings by more than 50% and diversifying its $285 billion foreign-exchange stockpile.
The sale was part of the IMF's previously announced plan to sell 403.3 metric tons of bullion as part of efforts to shore up the institution's finances.
<b>India paid $6.7 billion for the bullion, which was purchased during a two week period ending Oct. 30.</b>
The Reserve Bank of India (RBI) said the gold purchase was part of its foreign exchange reserve management operations.
Its gold holdings were valued at $10.32 billion, or about 3.6% of its $285.52 billion forex reserve stockpile, according to newswire reports that cited figures from RBI Friday.
<b>The recent purchase will lift India's bullion holdings to 557.7 tons, making it the 11th largest holder of the yellow metal among the world's central banks, according to newswire calculations based on September quarterly data from the World Gold Council.</b>
The sale will "help put the Fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," IMF Managing Director Dominique Strauss-Kahn said in a statement Monday.<!--QuoteEnd--><!--QuoteEEnd-->
The sale was part of the IMF's previously announced plan to sell 403.3 metric tons of bullion as part of efforts to shore up the institution's finances.
<b>India paid $6.7 billion for the bullion, which was purchased during a two week period ending Oct. 30.</b>
The Reserve Bank of India (RBI) said the gold purchase was part of its foreign exchange reserve management operations.
Its gold holdings were valued at $10.32 billion, or about 3.6% of its $285.52 billion forex reserve stockpile, according to newswire reports that cited figures from RBI Friday.
<b>The recent purchase will lift India's bullion holdings to 557.7 tons, making it the 11th largest holder of the yellow metal among the world's central banks, according to newswire calculations based on September quarterly data from the World Gold Council.</b>
The sale will "help put the Fund's finances on a sound long-term footing and enable us to step up much-needed concessional lending to the poorest countries," IMF Managing Director Dominique Strauss-Kahn said in a statement Monday.<!--QuoteEnd--><!--QuoteEEnd-->