Term:
Gold swaps
Definition:
Gold swaps are forms of repurchase agreements commonly undertaken between central banks or between a central bank and other types of financial institutions. They occur when gold is exchanged for foreign exchange, at a specified price with a commitment to repurchase the gold at a fixed price on a specified future date so that the original party remains exposed to the gold market. Its features are, therefore, very similar to those of a repo
Domain:
Finance
Source:
Monetary and Financial Statistics Manual, IMF, Washington, 2000, para. 154