How Central Banks Can Use Gold Revaluation Accounts In Times Of Financial Stress

Summary

• Multiple large central banks are currently operating at a loss while public debt levels are elevated.
• A GRA is an accounting item on the liability side of a balance sheet that records unrealized gains of gold assets.
• GRAs can recapitalize central banks and support government budgets or provide public debt relief.

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Because central banks are the root of the modern money tree, they can use entries in their gold revaluation accounts to turn into capital, pay for expenses, or transfer it to their respective Treasuries. In addition, gold revaluation accounts can be used to