Gold Exchange

金為替 ／ gold exchange　—　Institutions

A system that backs a currency with gold-denominated assets rather than physical gold. A tool of the shadow gold standard.

A system that supports a currency with reserves of foreign assets denominated in gold (such as the pound or dollar), rather than physical gold itself. It became widespread between the two World Wars as the gold exchange standard.

⚠ This is a shadow gold standard. When the anchor was tied not to gold but to another nation's currency, that nation's crisis became one's own.