i wonder about all the talk in favor of moving into gold. wouldn't it be almost impossible to actually sell that gold and use it to buy imports or support the domestic financial system? how do you exchange the gold for dollars when your banks dont have correspondent accounts working? or whoever deals with you is subject to secondary sanctions? reserve managers will be asking themselves how they should be using reserves to be able to actually support the domestic economy in a time of need. maybe the result will be more stockpiling of resources rather than currency reserves.
Historical Freeze of Russia's Central Bank Reserves
i wonder about all the talk in favor of moving into gold. wouldn't it be almost impossible to actually sell that gold and use it to buy imports or support the domestic financial system? how do you exchange the gold for dollars when your banks dont have correspondent accounts working? or whoever deals with you is subject to secondary sanctions? reserve managers will be asking themselves how they should be using reserves to be able to actually support the domestic economy in a time of need. maybe the result will be more stockpiling of resources rather than currency reserves.