All member nations originally contributed to the fund, partly in gold or dollars and partly in their own currencies. As a result, the IMF holds 3,217 tonnes (103.4 million oz) of gold, making it the world's third largest holder after the United States and Germany.

The IMF, however, was in the forefront of the drive to demonetize gold during the 1970s. It created its own Special Drawing Rights (SDRs), initially defining one SDR as equivalent to 0.888671 g (0.0028 oz) of fine gold. This link was later snapped in the effort to end gold as the numeraire of the monetary system and SDRs were linked instead to a basket of leading trade currencies.

The IMF also reduced its own gold stocks in a series of monthly auctions starting in 1976; they sold 777.6 tonnes (25 million oz) over four years at an average price of $246 per ounce. They also permitted members to buy back their gold, thus disposing of another 777.5 tonnes. The aim was to reduce gold's monetary role and to create a trust fund to aid developing countries.

The remaining gold is held on its books at the long out-dated price of SDR35/oz (about $44/oz).

In 1999, a proposal to sell 10% of its remaining stock in order to fund debt-relief for heavily-indebted poor countries was seriously considered by the IMF. The proposal was , however, strongly opposed by many gold producing countries and by the mining industry. This influenced the IMF's decision to reject the idea of outright sales, with instead the Fund later finding a less contentious means of raising the necessary resources. The Washington Agreement limiting European central banks' sales, reached at the IMF meeting in September 1999, would only complicate further the reaching of a consensus on any future plan for gold disposals by the IMF, of which at present there is no sign.

International Monetary Fund
700 19th Street, NW
Washington DC
Tel. +1 202 623 7000
Fax +1 202 623 6417
Web www.imf.org

See also: Bank for International Settlements (BIS); European Central Bank (ECB)