All Central Banks Swap Gold, Venezuelan Central Banker Says, but Who Asks Why?

by Chris Powell
GATA.org

Dear Friend of GATA and Gold:

In the report excerpted below Reuters reminds us today that in February the president of Venezuela’s central bank, Nelson Merentes, discussing gold swaps such as those the bank had begun, told the news agency: “It’s normal. All central banks do this.”

Seven years ago the U.S. Federal Reserve confessed to GATA, if inadvertently, its own participation in gold swaps, though, unlike Venezuela’s central bank, the Fed insisted on secrecy for its swaps:

http://www.gata.org/node/7819

But if “all central banks do this,” what is their objective?

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