Here is the list of Countries which are on the Gold Standard as per 2022.
Table of Contents
1. The United Kingdom
Today, you may hear the United Kingdom of Great Britain stated as a country on the gold standard. As a result of this, Great Britain was the first nation to implement the Gold Standard, although by mistake, in 1717.
Sir Isaac Newton, the Master of the Royal Mint, had fixed the silver-to-gold conversion rate incorrectly.
In 1821, the government formally embraced the traditional Gold Standard, only to abandon it in 1914 for a new system. In 1925, Britain became a member of the Interwar Gold Standard, which it left in 1931.
2. United States
The United States now has the greatest gold reserves in the world. A country that’s still held to the gold standard today, like Britain, is the United States.
It was only in 1933 that the United States of America formally abandoned its reliance on the gold standard. But in 1944, as part of the Bretton Woods Agreement, the United States likewise accepted a vestige of the Gold Standard.
The U.S. dollar became the world’s primary reserve currency, and currencies from other countries were tied to it. Between 1971 and 1973, however, the Bretton Woods Agreement came to a formal conclusion.
Due to the United States’ diminishing gold reserves, it was no longer possible to directly convert US currency into gold.
As a result of the International Gold Standard, Germany became the first country to embrace the gold standard in 1871. Due to the fact that other nations were influenced by it, they adopted the Gold Standard.
War reparations had exhausted Germany’s gold holdings, therefore it decided to abandon the gold standard at the start of the First World War. Then, in 1923, it reappeared for a few more years before being phased out again.
Because of Germany’s present huge gold holdings and its short absence from the gold standard, the nation may appear on a list of countries still on the gold standard.
France’s Gold Bloc leadership has made it a household name in the world of the Gold Standard. France, along with Belgium, Italy, Luxembourg, the Netherlands, Poland, and Switzerland, remained committed to the Gold Standard at a time when other countries were abandoning it.
Despite the ultimate collapse of the Gold Bloc, France is often cited today when nations on the Gold Standard are discussed.
In addition to being one of the world’s greatest gold-reserve nations, Switzerland was also the final country to break away from the Gold Standard. The Swiss franc was no longer backed by gold in 1999 when the nation chose to break links with the country’s currency.
In 2014, the “Save our Swiss Gold” initiative seemed to be poised to bring the nation back to the Gold Standard.
Also See: Wealth Inequality by Country 2022
Voters approved a measure requiring the Swiss National Bank to hold at least 20% of its assets in gold and prohibiting the SNB from exporting or keeping its gold reserves outside of Switzerland. In the end, this plan was deemed unworkable.
As a result, despite the fact that Switzerland may appear on a list of nations using the gold standard today, it does not.