The next 2 paragraphs are inter -dependent and unfolds an interesting story.
- “Central banks globally have accumulated gold reserves this year at a pace never seen since 1967, when the US dollar was still backed by the precious metal.”
- “Global FX Reserves have declined by about $1 trillion, or 7.8%, this year to $12 trillion, the biggest drop since Bloomberg started to compile the data in 2003.”
Usually when the US dollar is rising, the Emerging Markets' FX reserves are under pressure and seldom have to liquidate their GOLD reserves to manage their domestic currency.
