IMF backs gold
This came in a letter on 3 May to "Drop the Debt" by Thomas Dawson, Director of the External Relations Department. The letter contained the following passage:
"The IMF's gold reserves are a fundamental strength in its financial position, giving it increased credibility and the capacity to assist its broader membership in crisis situations. The 1999 decision by the membership to use income from investing the profits from off-market gold sales to help finance the IMF's contribution to the HIPC initiative had a substantial cost to the institution and its members. It was an exceptional one-time measure. Additional sales would put at risk the confidence of members in the Fund's solidity, and thus its ability to lend".
This is viewed by outside commentators as a more positive statement about gold than any other that has come from the IMF in recent years.
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