“‘In the immediate aftermath of the crisis, we had to sell dollars to prevent our currency going into freefall. During Quantitative Easing, we had to buy dollars to protect our financial stability. And when the Federal Reserve began to taper QE, exchange rates slumped again and we had to defend ourselves with our reserves. All these events prompted one obvious question – is there an alternative to the dollar?’ Subbarao explains.”
USAGOLD note: Subbarao, former governor of the Reserve Bank of India, goes on to explain that if central banks cannot rely on the dollar for stability then they need to find it elsewhere. “Holding gold within our reserves,” he adds, “is an integral part of that self defence.” As it is, we might add, for private individuals as well.
Image courtesy of Visual Capitalist
Source: USA gold