So, how long do you guys think a central bank can continue ti support a fiat currency? Is it like a third world fiat is just tending to its intrinsic value (zero) supported by only the reserve Bank?
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0 sats \ 1 reply \ @Undisciplined 20 Oct
It depends what they're goals are. I think the Indian central bank could pretty easily boost their currency. They'd just have to increase their gold reserves.
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42 sats \ 0 replies \ @spiderman OP 21 Oct
With the fx reserve, it can either support rupee or buy gold. Not both. Also, i don't think buying gold strengthens a currency, when a currency has no fixed gold pegs to begin with. Gold is just another competing form of money, it is not the backing of any other money.
And if India prints rupee to buy gold, the effect will be the opposite
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