Boston University: IMF gold sale could fund climate debt relief

The International Monetary Fund (IMF) should consider selling 4 per cent of its gold reserves to provide debt relief to low-income countries facing climate-related catastrophes, a study from Boston University’s Global Development Centre recommended on Wednesday.

The sale, valued at an estimated $9.52 billion given current gold prices above $2,600 per ounce, could expand the IMF’s Catastrophe Containment Relief Trust (CCRT), which currently only aids 30 countries with $103 million in funding.

The report argues that the CCRT’s strict eligibility criteria exclude many climate-vulnerable nations and that a boost in resources could offer broader relief without lending conditions.

While the IMF last sold gold in 2009–2010 to enhance lending, this sale would require board approval and pledges from member states to direct proceeds to the CCRT.

Attribution: Reuters

Subediting: M. S. Salama

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