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Generate QuizDuring the severe Balance of Payments crisis in 1991, India had to pledge its gold reserves to secure an emergency loan from the IMF. Where was this gold physically airlifted and pledged?
- Federal Reserve, New York
- Bank of England, London and Union Bank of Switzerland
- Bank for International Settlements, Basel
- World Bank Headquarters, Washington D.C.
Answer: Bank of England, London and Union Bank of Switzerland
In a defining moment of economic history, India airlifted 67 tonnes of gold to the Bank of England and the Union Bank of Switzerland in May-July 1991. This desperate measure secured a $600 million emergency loan from the IMF, preventing a sovereign default and setting the stage for the historic LPG (Liberalization, Privatization, Globalization) reforms spearheaded by Dr. Manmohan Singh.