03 November 2009

india's central bank buys 200 metric tonnes of gold - 6.7 billion usd

The International Monetary Fund announced today the sale of 200 metric tons (440,924 pounds) of gold to the Reserve Bank of India.
The transaction, which is in the process of being settled...total sales proceeds are equivalent to US $6.7 billion or SDR 4.2 billion. ~ imf press release

Pranab Mukherjee, India’s finance minister, said the acquisition reflected the power of an economy that laid claim to the fifth-largest global foreign reserves: “We have money to buy gold. We have enough foreign exchange reserves.”

He contrasted India’s strength with weakness elsewhere: “Europe collapsed and North America collapsed.”

The purchase by New Delhi’s Reserve Bank from the International Monetary Fund pushed gold prices to a record $1,086.10 per troy ounce, up 2.6 per cent on the day, as traders bet that other central banks would also become buyers.~ financial times gold hits record high on india purchase