IMF Is Requested to Sell Gold to Cover the Debt Payments

The world debt crisis is at the peak in the current time, and thus, debt campaigners are requesting the International Monetary Fund (IMF) to sell gold from its stock for covering the debts. 

The JDC or Jubilee Debt Campaign at the IMF’s annual meeting said that selling gold would assist the most vulnerable and most impoverished countries in surviving the Covid-19 shock, meeting the debt payments.

The International Monetary Fund has a stockpile of 2,814 metric tons of gold or 90.5m ounces. And it worth nearly £134bn based on the current market prices. It’s no secret that gold experienced a sharp rise in its price this year, and it is expected to continue increasing in the coming days too.

Thus, it is undoubtedly the best time to sell gold items, especially that you no longer use or are broken, tangled, and secure the highest amount of cash for gold with confidence. 

Nevertheless, while the gold price reaches a record-breaking level, the value of the IMF’s gold stock has appreciated by £29bn. The Jubilee Debt Campaign opined that if the IMF sells less than 7% of its gold, it is likely to bring about £1.98bn profit. 

And this is sufficient for covering the debts that seventy-three poorest countries owe until the completion of 2021. The Washington-based organization will yet possess about £19.90 more gold in comparison to the amount it held at this year’s beginning. 

The Debt Relief Plan

The International Monetary Fund (IMF), as well as the World Bank, perceives that poor countries need a substantial debt relief plan. It would include the debts that are owed to multilateral organisations, the private sector and governments. 

The JDC believes that selling of gold will serve as an impetus for a big debt deal. The JDC director, Sarah-Jayne Clifton asserted –

“There is enormous inequality in the resources available to countries to help them weather the Covid crisis. Poorer countries don’t have the monetary and other tools available to them that rich countries are using to keep their economies afloat.”

The International Monetary Fund (IMF) can help in bridging this gap using its resources and tools. It can quickly put forward an all-inclusive debt payment cancellation scheme and help the vulnerable countries in covering debts in the coming four years. 

Consequently, these countries would cope with the current health and economic crisis and also, recover economically quickly in the upcoming years. 

Additionally, the JDC proposed the rich countries to utilize the IMF’s proficiency in creating reserve assets (Special Drawing Rights) for cancelling the poor countries’ debts. 

So, the profit of gold sales, together with the special drawing rights (SDRs) would be enough to call off all debts that the most impoverished countries owe to multilateral organizations until 2024. 

Gerry Rice, the spokesman of IMF, said –

“Gold reserves provide fundamental strength to the IMF’s balance sheet, enabling the Fund to lend safely and at low cost to its member countries. This is particularly important at present when the IMF is undertaking exceptionally large support for its membership, including its poorest member countries, in the context of the Covid-19 pandemic. The IMF has no plans to sell gold at this time.” 

He further added –

“The IMF has approved emergency financing of over $10bn to 47 low-income countries since March, and last week we extended a second six-month tranche of debt service relief in grant form for 28 poor countries, funded by richer countries.”

In such an economic downturn, many people may want to get access to fast cash to meet many financial needs.  Keeping in mind the current gold price surge, if you have gold jewellery or any gold items in your drawer that is only gathering dust for years, you can decide to sell it. What may seem like useless can offer you excellent return in the current time.

Sell scrap gold or any gold jewellery pieces to the trusted gold buyers like at The Luxury Hut. You will secure the best possible price for your gold based on the metal’s spot price on the day of valuation. Getting cash for gold has never been so convenient than today.

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