Summary: BERLIN - Chancellor Angela Merkel has ruled out using gold and currency reserves or IMF special drawing rights
, or SDRs, to boost the eurozone bailout fund for fear of violating the independence of Germany's central bank, which opposes such use of reserves.
QE2), capital controls, IMF Special Drawing Rights
, and more representation for emerging market countries.
Strauss-Kahn said resources for the fund, "which could climb to $100 billion a year," could be raised through an allocation to IMF member countries of IMF special drawing rights
, or SDRs.
An IMF official said the sale was concluded at an average price of about $1,045 an ounce and that the transaction would be paid in hard currency and not in IMF Special Drawing Rights
The one-time, unconditional allocation of $250 billion worth of IMF Special Drawing Rights
, or SDRs, will boost liquidity to emerging and poorer economies by $100 billion.
Earlier this month, the Group of 20 nations tripled the IMF's resources to USD750bn, and also agreed to support a general allocation of USD250bn worth of IMF Special Drawing Rights
(SDRs) to IMF member countries to boost liquidity amid troubled credit markets.