Mar-A-Lago Monetary Conference to Discuss American & Chinese Gold Pilot Projects
By JC Collins
We have previously covered the addition of gold to the Special Drawing Right (SDR) of the International Monetary Fund. The SDR is being further developed to act as the international reserve unit of account and will replace the international role of the USD through an incremental process which began after the financial crisis. The need to re-form the international monetary system has been well defined and explained here, but the exact role of gold in that re-structuring has not been so clear.
The debate has been around whether gold should in fact play a role in helping re-structuring the international monetary system, and if so, would it be added directly into the SDR weighted composition alongside the US dollar, Chinese renminbi, British pound, euro, and Japanese yen, or would those currencies move to a gold standard domestically?