WGC Proposes Euro Nations Should Consider Gold as Collateral
Euro zone nations that have “significant” gold holdings should use bullion as collateral for sovereign debt issuance to reduce bond yields, the World Gold Council proposed.
The council commissioned Europe Economics to “challenge and assess the merits of its proposals relative to other suggested monetary policy tools, such as the European Central Bank’s Outright Monetary Transactions program,” the organization said in a report on its website.
“The paper assesses the council’s proposals on gold as collateral for euro zone sovereign debt, especially in the case of Italy and Portugal,” it said.
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