China To Purchase Half of IMF’s Gold
Submitted by Ducimus Plinius
China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.
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World central banksstarted to increase their gold reserves after prices on gold began toclimb in 2001. The IMF sells gold within the scope of a program todiversify sources of income and achieve an increase in lending.
The IMF announced an intention to sell 403.3 tons ofgold in accordance with the adequate decision made by the board ofdirectors of the fund in September of 2009. India, Mauritius and SriLanka purchased about 212 tons of the amount at the end of 2009. Indiapurchased most – 200 tons.
China’s interest in international trade is connectedwith the development of the nation’s economy, as well as with thegrowing consumer demand in the country.
“Chinese officials have confirmed previousannouncements from IMF experts and said that the purchasing of 191 tonsof gold would not exert negative influence on the world market. Chinais interested in the development of the domestic consumer market,” theagency reports.
Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said.
The IMF has received the profit of $7.2 billion fromgold sales. A part of the funds is to be used for crediting poorcountries.
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