The executive board of the IMF continued to disagree, in an early September discussion, on what to do with the $2.76 billion windfall profits from its 2009-10 gold sales (see Update 75, 67). The sales aimed to fund an endowment for financing the Fund’s administrative costs such as salaries. The Board members remain split as to whether to put the extra money toward the endowment, the Poverty Reduction and Growth Trust, or precautionary balances in light of heightened credit risk. The windfall, which resulted from high gold prices at a time of global uncertainty, will remain in the endowment account until another meeting on the subject in 2012.
World Bank & IMF in the news
New collection of critical essays by authors from MENA and Sub-Saharan Africa do a retrospective of the BWIs involvement in the region, and the legacy of BWIs-supported unjust and extractionist world economic order.
Briefing examines the shortcomings of the current SDRs allocation system and calls to reform SDRs to ensure their targeted, needs-based and equitable distribution.