Gold-Backed Ruble Could Become Game Changer for World Monetary System – Scholar

Monday, August 27, 2018
By Paul Martin

While the United States continues to ramp up sanctions against Russia, Moscow keeps building up its gold reserves, which have already quadrupled since 2008 and currently amount to nearly 2 thousand metric tons.

Commenting on the recent reports about Russia increasing its gold reserves, Thorsten Polleit, Honorary Professor of Economics at the University of Bayreuth and co-founder of an Alternative Investment Fund, told Sputnik that “holding gold is certainly a smart route to take” for a country that seeks “a hedge against the demise of the US dollar” or wants to decrease its dependency on the US currency.

“If Russia decides to back the Ruble with gold – this could be a truly powerful game changer for the world’s monetary system!” he declared.

Polleit noted however that in the current situation he cannot see the US dollar’s status as the world’s leading currency being challenged “by any other unbacked paper currency in the near future.”

“The world’s financial system is de facto ‘dollarized’; there is still great demand for the Greenback motivated by financing and transaction purposes. I am even inclined to think that in a true world financial crisis, the US dollar would be ‘the last man standing’ in the universe of unbacked paper currencies,” Polleit explained.

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