-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 ECB liabilities are currencly about 872 billion euros. gold denominiated assets are worth about 126 billion euros. so this give a ratio of about 15%. Foreign currency denominated assets are about 30% and the remaining assets are euro denominated.
Although the value of the euro can go down with respect to gold, that fact that the ecb *has* these gold denominated assets on its balance sheet helps the ecb maintain the value of the euro with respect to gold, in the same way that the holding of foreign currency enables the ecb, and any central bank, to maintain stibility of its currency with respect to the foreign currency. The money is fait money whatever the reserves are denominated in. The holding of reserves does, however increase the capacity of the central bank to maitain a stable currency. David Hillary -----BEGIN PGP SIGNATURE----- Version: PGPfreeware 7.0.3 for non-commercial use <http://www.pgp.com> iQA/AwUBPEcTwxNDEcR4nEncEQI+iwCguaQh0fLkjLGEM1uPkit3eAnRRz0AoLsG OMy69PrWDR7dWXd6ZTCvmhMQ =NfD6 -----END PGP SIGNATURE----- --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
