Gold Reserves

Summary of Gold Reserves

The gold held by a nation as reserves for currency issued. After U.S. abandonment of the gold standard in 1933, Congress mandated that the Federal Reserve banks would have to hold gold certificates, reflecting gold on deposit with the U.S. Treasury equivalent to at least 25 percent of currency and demand deposits outstanding. In 1968 Congress repealed the Gold Reserve Act, thus abolishing this requirement.

(Main Author: William J. Miller)

Gold Reserves in International Trade

Meaning of Gold Reserves, according to the Dictionary of International Trade (Global Negotiator): Gold retained by a nation's central bank, forming the backing of currency that the nation has issued.