IMF's Gold Reserve Could Fund Ebola Relief Efforts

The International Monetary Fund (IMF) is struggling to provide debt relief to countries affected by the Ebola crisis, as its Catastrophe Containment and Relief Trust (CCRT) has run dry.

The trust was created in 2014 after the Ebola outbreak in Guinea, Liberia, and Sierra Leone, when the IMF's managing director, Christine Lagarde, proposed an additional financing package to G20 heads of state. The CCRT allowed the poorest countries to redirect fiscal resources from debt repayment to protecting lives.

However, the COVID-19 pandemic nearly exhausted the CCRT's resources, leaving it with only $120 million available. This is not enough to cover even one country facing a disaster, let alone the 30 others that might potentially apply for assistance.

The Democratic Republic of Congo (DRC) is among those affected by Ebola, with over 2,000 deaths confirmed and an estimated 1 million people pushed into poverty. The DRC carries more than $3 billion in outstanding debt to the IMF and will likely require additional financing as it confronts a combination of oil-price shocks, slowing economic growth, and Ebola.

A senior academic researcher at the Boston University Global Development Policy Center suggests that selling some of the IMF's gold reserves could seed a permanent endowment capable of funding the IMF's subsidy accounts indefinitely. The IMF holds approximately 90.5 million troy ounces of gold, which represents an unrealized profit of approximately $357.9 billion if sold at today's market price.