Central Banks

Natalie Dempster, Director of Government Affairs, World Gold Council, discusses gold-backed bonds with Professor Ansgar Belke.

The World Gold Council has conducted extensive research on gold and has demonstrated in past submissions to the Basel Committee on Banking Supervision that gold meets the fundamental and market criteria required to be considered a high quality liquid asset for Basel III.

This paper argues that using gold as collateral for highly distressed bonds would bring great benefits to the euro area in terms of reduced financing costs and bridge-financing. It is mindful of the legal issues that this will raise and that such a suggestion will be highly controversial. For this purpose…

Dr. Andrew Lilico, of Europe Economics, discusses his paper The use of Gold as Collateral for Eurozone Sovereign Debt. The paper assesses the World Gold Council’s proposals on gold as collateral for Eurozone sovereign debt, especially in the case of Italy and Portugal.

Leading European think tank the Centre for European Policy Studies (CEPS) analyses the impact on the gold market of various euro area economic scenarios.

This chapter was first published by Central Banking Publications in their annual “RBS Reserve Management Trends”, in April 2012. The chapter address the question of how much gold emerging market central banks should be holding from a domestic currency perspective. It examines the performance of a typical central bank portfolio when denominated in nine emerging market currencies.