Although at the moment Greece’s banks are closed and there is a daily withdrawl limit of 60 euros on bank machines, the country has 112.5 tons of official gold reserves which could provide a cure for economic collapse.
112.5 tons of gold equates to $4.18 billion at today’s gold price. That would be a huge amount of money for Greece. If the country decides to sell its gold, it could use the proceeds to make its 1.5 billion euro ($1.7 billion) interest payment to the International Monetary Fund (IMF). Moreover, it can also put money into the country’s banking system, so pensioners can get their checks and people can do business.
Greece is not selling its gold, however, and there is a good reason for it. There has been a debate on whether Greece should leave the eurozone and start its own currency. Bringing back the drachma would give Greece the ability to set its own monetary policy. However, to secure a new currency, Greece would need to have a substantial amount of gold reserve as a guarantee to redeem promises to pay depositors, paper money holders, and trading partners. With its lackluster economy, gold is of significant importance if the country decides to leave the eurozone.
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