RBI to buy IMF notes worth $10 bn

RBI to buy IMF notes worth $10 bn

Mumbai: The Reserve Bank of India (RBI) on Friday agreed to purchase up to $10 billion (Rs45,500 crore) of International Monetary Fund (IMF) notes as a part of an international effort to support the fund’s lending capacity.

The Group of Twenty (G-20) nations has pledged to triple the resources available to IMF to $750 billion. To increase its lending capacity, IMF also sold 200 tonnes of its gold to RBI in November last year.

RBI said the latest purchase is a temporary bilateral arrangement for an initial period of one year, which may be extended by a period of upto two years.

Permanent increases in the resources of IMF are expected to take place through an increase in quotas and standing borrowing arrangements which are currently under negotiation," RBI said.