Washington Survey (2301a979-c1e4-4d92-98f1-95fc03a87d30)

The Joint Economic Committee's subcommittee on international payments and exchange has recommended that, following international monetary reforms, the law which prohibits private possession of gold by American citizens be repealed. The subcommittee recommendation called for reforms to enhance the role of special drawing rights in international monetary affairs and downgrade the role of gold. Special drawing rights, also known as "paper gold", are on artificial reserve with the International Monetary Fund (IMF) which distributes them to member nations in proportion to their economic importance in the world economy. The special drawing rights are then used to settle debts between nations in the same manner as gold or currency. The subcommittee said that under the reforms now being discussed special drawing rights would be acceptable in lieu of gold among the member countries of the IMF.