Gold, The Dollar And The Currency Reform Of The International Standard

As a measure of value of commodity, medium of exchange, and representative of social wealth ,gold has been used by humans for thousands of years. Since the first international monetary system - the gold standard- was established, gold has been playing a very important role in the international monetary system. The establishment of Bretton Woods system pushed the U.S. Dollar to the center of the international monetary system and it became the world's main reserve currency. After the collapse of the Bretton Woods system, the role of gold as currency gradually fade into the wilderness, but the dollar still held a hegemonic position in the international monetary system. This article examines the relationship between gold and dollar in the different historical periods, indicating that gold cannot be completely discarded from human's monetary system. Gold still has part of monetary function and it will still take part in the future international monetary system. This provides some referrence to the future trend of the international monetary system's reform. In addition, gold will also play a very important role in the process of RMB internationalization. Therefore, China should increase gold reserves so as to support the internationalization of RMB.