Russia is looking into its own gold standard after LBMA ban

Russia is proposing its own international standard for precious metals after being barred from doing so by the London Bullion Market Association (LBMA). It could also have a fixed price in national currencies. The country’s Finance Ministry stated that the creation of the new Moscow World Standard (MWS) is “critical” in order to “normalise the functioning of the precious metals industry” and provide an alternative to the LBMA.

“The foundation of this new structure will be a new, specialised international precious metals brokerage headquartered in Moscow, relying on the MWS,” the Finance Ministry said in a letter quoted by Russian media. Russia is also proposing to fix precious metals prices in key member countries’ national currencies or through a new monetary unit, such as the new BRICS currency proposed by Russia’s President Vladimir Putin.

The Eurasian Economic Union’s central banks and other large banks would be represented on the price-fixing committee (EEU). Russia, Kazakhstan, Belarus, Kyrgyzstan, and Armenia are EEU members. The plan is to make membership appealing to major gold players such as China, India, Venezuela, Peru, and other South American countries. According to the Finance Ministry’s letter, the establishment of such an organisation would quickly end the LBMA’s monopoly and ensure the stable development of the precious metals industry in Russia and around the world.

 

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