WASHINGTON (Commodity Online): After India bought 200 tonnes of the International Monetary Fund’s (IMF) gold, it is the turn of Mauritius.

The African nation bought two tonnes of gold from the IMF for around $72 million.

Sale of two tonnes of gold to the Bank of Mauritius, which is the central bank of Mauritius, was conducted on the basis of market prices prevailing on November 11 with proceeds equivalent to $71.7 million, the IMF said.

Reserve Bank of India had bought 200 tonnes of gold from the IMF for $6.7 billion earlier this month.

This transaction is part of the total 403.3 tonne sales approved by the IMF executive board in September and adds to the 200 tonnes already sold to the Reserve Bank of India.

The money, thus generated would be used by the IMF to fund projects in Africa and other third world countries.

The India deal, which surprised traders who expected China to be the most likely buyer, relieved the gold market of some uncertainty over how and when the IMF would sell 403.3 tonnes of gold, about one-eighth of its total stock. The deal increased India’s gold holdings to the tenth largest among central banks.

It also fuelled speculation that other governments, including Beijing, may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.

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