The IMF said that its profit for the current fiscal year would be better than expected at $688 million, lifted by crisis lending and favourable exchange rates.

The International Monetary Fund, which had been losing money before the global economic crisis, increased its forecast for the fiscal year to April 30 from a projection in June of $453 million in net income. The fund's midyear review said income from lending would be about $180 million more than anticipated as a result of the vast expansion of its lending during the global crisis.

The IMF said its financial position also was helped by the lower value of the dollar against the IMF unit known as a Special Drawing Right, based on a basket of currencies.

Because IMF business is conducted in SDRs, its administrative expenses would be lower than anticipated because of the weaker dollar.

The IMF said gold sales authorised this year to help diversify the fund's asset base have yielded profits so far of around $4.7 billion. Some 212 metric tonnes were sold in October and November of a total of 403.3 metric tonnes authorised for sale.

The IMF has been investing these profits in an endowment "to generate income on a sustainable long-term basis," according to the IMF statement.The international organisation said it expects to earn a total of $150 million in the current fiscal year from its investments.

In the prior fiscal year the IMF closed its books with a profit of $126 million, compared with a loss of $89 million a year earlier.