1 option
Gold in Central Bank Reserves : Strategic Considerations, Market Risks, and Practical Guidance / Istvan Mak, Etienne Vaccaro-Grange.
- Format:
- Book
- Government document
- Author/Creator:
- Mak, Istvan.
- Series:
- IMF Notes; IMF Notes No 2026/007
- IMF Notes
- Language:
- English
- Physical Description:
- 1 online resource (30 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2026.
- Summary:
- Gold has re-emerged as a prominent component of central bank reserves, largely reflecting valuation gains from higher gold prices rather than large-scale accumulation. This Note assesses gold’s role from a reserve management perspective, emphasizing that while gold carries no credit risk and may support long-term balance-sheet resilience, it is highly volatile, offers only conditional hedging and diversification benefits, and is ill-suited to the liquidity tranche of reserves. The analysis recommends applying explicit market-risk haircuts when assessing gold’s effective liquidity and avoiding interpretations of valuation gains as durable improvements in reserve adequacy. It also cautions that domestic gold purchase programs—especially those involving non-monetary gold—can create mandate, governance, balance-sheet, financial integrity, operational, and monetary policy risks. Central banks should treat gold as a high-risk reserve asset and anchor gold accumulation decisions in strategic asset allocation and sound policy analysis.
- Notes:
- Description based on print version record.
- ISBN:
- 9798229050609
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.