Gold and foreign-reserve diversification for emerging-market central banks

Published 25th January 2013

Categories: Investment

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Emerging-market central banks have begun increasing their gold allocations. This study considers optimal gold-allocation ranges for a foreign reserve portfolio from multiple perspectives, when reserves are measured both in US dollars and from a local currency perspective. The study concentrates on nine different emerging-market currencies, including the Indian rupee, Singapore dollar, Brazil real, and Thai baht.