Reported by: Jonathan Guthrie

Nations challenged by the so-called “tyranny of the dollar” are quietly buying gold to replace foreign currency in reserves or for other purposes. Russia springs to mind: most of its government institutions, banks and bigwigs are covered by sanctions. China is also subject to a growing raft of trade curbs amid tensions over Taiwan.

Gold can also be traded more easily beyond US oversight than dollars. For unaligned states, dollar dealings too often touch New York’s markets. They are also likely to feature the multinational banks through which American regulators achieve extraterritorial reach.

Increasing gold reserves — without pushing the price up by admitting it — would be a pragmatic move for Russia and China. Using the commodity as a transactional currency would be a natural extension of the policy but would represent a shift from sanctions avoidance to sanctions busting.

Read full report: https://www.ft.com/content/c0903d85-f56d-4233-9650-c501ce2bab1a