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Source: China Knowledge China Knowledge

China mulls buying IMF gold

Published: 21 Sep 2009 21:27:45 PST

Sep. 22, 2009 (China Knowledge) - China is considering purchasing gold being offering for sale by the International Monetary Fund, said unnamed government officials, Market News International reported.

One government source reportedly said that China will consider purchasing IMF gold if the price is right and the return is relatively high.

The multilateral institution on Friday formally agreed to sell 403.3 metric tons of gold, one eighth of its holdings, to central banks or in the gold market.

The purchase of gold would be in line with the Chinese government's effort to diversify the country's abundant foreign exchange reserves to reduce foreign exchange risk.

The purchase might also help China gain influence with the IMF.

China earlier this month signed an agreement to buy around US$50 billion worth of the first batch of IMF bonds, according to an earlier report from China Knowledge.

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