Why are gold and currency are the only two assets held as reserves by central bank, when the values are so volatile; Can we hedge against gold and currency movements as a central bank?
Can we have some central bank reserve in international corporate bonds, equities, and real estate? Or may be even timberland, or other commodities?
Is liquidity and fungibility of gold the core reason behind keeping it as a reserve asset?
Some international corporate bonds (Merck, Amgen etc.) are much more stable than US T-bills given their financial positions.
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