Gold and the International Monetary Fund (IMF)

Gold and the International Monetary Fund (IMF)

Gold and the International Monetary Fund:

 Gold is a monetary base used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS)

 

How did the Fund's holdings of gold?

Fund got possession of gold from the current four main types of transactions

First: when the fund was established in 1944 decided to use the gold to pay 25% of the initial membership subscriptions and subsequent quota increases, which constitutes the largest source of gold for the Fund

Second: Gold was commonly used in the payment of all fees payments (ie interest on member countries use a credit fund)

Third: the country could the member who wants to get on another member's currency to sell gold to the Fund in exchange for them. The biggest use for this rule is the sale of gold from South Africa to the Fund in the period 1970-1971

Fourth: Member countries could use gold to repay loans from the 

fund.