A New Gold Standard? Kremlin Confirms Intention to Back Ruble With Gold And Commodities

“On Tuesday 26 April in an interview with newspaper Rossiyskaya Gazeta (RG), the Secretary of the Russian Federation’s Security Council, Nikolai Patrushev, said that Russian experts are working on a project to back the Russian ruble with gold and other commodities. The interview, which is in Russian, can be seen on the RG website here.”

RG QuestionAnd what do we need to do to ensure the ruble’s sovereignty?

Nikolai Patrushev: For any national financial system to be sovereignizedits means of payment must have intrinsic value and price stabilitywithout being pegged to the dollar.

Now experts are working on a project proposed by the scientific community to create a two-circuit monetary and financial system.

In particular, it is proposed to determine the value of the rublewhich should be backed by both gold and a group of goods that are currency values, and to put the ruble exchange rate in line with the real purchasing power parity.”

A New Gold Standard? Kremlin Confirms Intention To Back Ruble With Gold And Commodities | ZeroHedge

Published by markskidmore

Mark Skidmore is Professor of Economics at Michigan State University where he holds the Morris Chair in State and Local Government Finance and Policy. His research focuses on topics in public finance, regional economics, and the economics of natural disasters. Mark created the Lighthouse Economics website and blog to share economic research and information relevant for navigating tumultuous times.

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