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.
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.