You do that when your economy is strong economically, not when it’s about to collapse. Gold peg means nothing if you don’t have the gold reserves & couldn’t exchange it even if you did.
I would say that typically breaking the link between a country’s currency and gold leads to economic weakness (inflationary monetary policy destroys economies) and so only a weak economy would go back to gold. Russia was buying gold for the last 10+ years. It’s also the 3rd largest gold producer in the world. There is reason to believe Russia (and China) have more gold than they’re letting on.
Wow maybe that’s why they’re creating a gold peg?
You do that when your economy is strong economically, not when it’s about to collapse. Gold peg means nothing if you don’t have the gold reserves & couldn’t exchange it even if you did.
Russia does have some 2,000 tons of gold reserves.
I would say that typically breaking the link between a country’s currency and gold leads to economic weakness (inflationary monetary policy destroys economies) and so only a weak economy would go back to gold. Russia was buying gold for the last 10+ years. It’s also the 3rd largest gold producer in the world. There is reason to believe Russia (and China) have more gold than they’re letting on.