Central banks hold gold reserves primarily to maintain monetary stability and confidence.
Central banks hold gold reserves primarily to maintain monetary stability, hedge against inflation, and provide a safe-haven asset during times of economic uncertainty and financial turmoil.
The retrieved literature supports the claim that central banks hold gold reserves to navigate financial turmoil, avoid currency risks, and support stability. Papers [5] and [11] explicitly address central bank gold reserves in the context of avoiding currency risks, mitigating financial instability, and safeguarding economic systems.
S. Sathyanarayana, T. Mohanasundaram. The Surge in Gold Price Volatility: Macroeconomic Drivers, Geopolitical Risk, and Market Dynamics. 2025. https://doi.org/10.21013/jmss.v21.n1.p2
Paper [5] confirms that gold serves as a traditional store of value and safe-haven asset, noting that central banks manage gold reserves to avoid currency risks and financial turmoil.
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Xu Wenhong. Dedollarization as a Direction of Russia's Financial Policy in Current Conditions.. 2023. https://doi.org/10.1134/s1075700723010185
Paper [11] notes that increasing gold reserves is a strategic policy used by central banks to protect national sovereignty and financial stability against external shocks.
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