CIA Memo Explains How IMF’s Special Drawing Rights Were Meant to Displace Gold

by Chris Powell, GATA
Gold Seek

Dear Friend of GATA and Gold:

Our friend Stuart Englert, who is writing a book on gold price suppression, calls attention to a declassified 1970 Central Intelligence Agency memorandum asserting that the Special Drawing Rights of the International Monetary Fund were created in 1967 in large part to reduce the world’s demand for gold and particularly to reduce exchange of U.S. dollars, the world reserve currency, for gold.

The creation of SDRs corresponded with the troublesome increase in offtake from the London Gold Pool, through which the United States and seven allied governments in Western Europe dishoarded metal from their reserves to hold the official dollar-gold exchange rate at $35 per ounce. The pool collapsed in March 1968:

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