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Treasury

Answer

Mr. Tyrie: To ask the Chancellor of the Exchequer what is Her Majesty's Government's policy on (a) a revaluation and (b) the sale of the IMF's gold reserves. [56524] Ms Hewitt: The UK Government support, and have been pressing for, the sale of a proportion of the IMF gold reserves to provide financing for the HIPC initiative. The UK will continue to press for gold sales in the IMF Executive Board. Gold sales require the approval of the Executive Board by a majority of 85 per cent., and we are therefore working closely with other members at the IMF to secure Board approval. We would expect gold to be sold on the basis of market prices, in line with the provisions set out in the IMF Articles of Agreement. The IMF can use its gold only by selling it. Under the Second Amendment to the IMF Articles of Agreement, it cannot use gold in loans, leases or as collateral in transactions and operations. Revaluation of gold in the IMF accounts would not therefore provide any additional resources for IMF lending or financing.

Secondary information

Type

Written question

Reference

319 c841W; 56524

Session

1997-98

Subjects

International Monetary Fund Sales Currency realignment Gold and foreign exchange reserves