Which Countries are on the Gold Standard? 2022

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The United Kingdom

When it comes to what countries are on the gold standard today, you might hear the United Kingdom of Great Britain mentioned. That’s because Great Britain was the first country to adopt the Gold Standard, albeit accidentally in 1717. This happened after Sir Isaac Newton, who was the Master of the Royal Mint, mistakenly set the exchange rate for silver to gold too low.

The country then officially adopted the classical Gold Standard in 1821, only to leave in 1914. Britain later joined the Interwar Gold Standard in 1925 but stopped using the Gold Standard for the final time in 1931.

United States

The United States currently holds the world’s largest gold reserves. Like Britain, the US often comes up concerning what countries are on the gold standard today. However, the US officially left the gold standard in 1933. However, after that, the US also adopted a remnant of the Gold Standard under the Bretton Woods Agreement in 1944.

The United States dollar then became the dominant reserve currency, and currencies from other nations were pegged to its value. However, the Bretton Woods Agreement officially ended in the period between 1971-1973. This was a result of the US dwindling gold reserves, meaning direct convertibility of the US to gold was no longer feasible.

Germany

Germany first adopted the gold standard in 1871, and this move is largely attributed to the development of the International Gold Standard. That’s because it spurred other countries to adopt the Gold Standard.

Germany went off the gold standard in 1914 because war reparations had depleted its gold reserves. However, it returned to the system in 1923 for a few more years. This brief hiatus on the gold standard and Germany’s current large gold reserves is why you might see the country included in the list of countries on the Gold Standard.

France

When it comes to the Gold Standard, France is famous for having led the Gold Bloc. When most countries were abandoning the Gold standard, France, along with Belgium, Italy, Luxembourg, the Netherlands, Poland, and Switzerland, were determined to remain on the Gold Standard. Although the Gold Bloc eventually collapsed, this is perhaps why France often comes up when countries that are on the Gold Standard today are mentioned.

Switzerland

Switzerland is one of the top countries with the largest gold reserves, and it was also the last country to eliminate its connection to the Gold Standard. In 1999, the country voted to sever ties between the country’s currency and gold, meaning the Swiss franc need not be backed by gold. However, in 2014, the country seemed poised to return to the Gold Standard under the “Save our Swiss Gold” motion.

This initiative was put to the vote, and it stipulated that the Swiss National Bank’s assets should include at least 20% gold, and the SNB should be banned from selling gold or storing its gold reserves abroad. This initiative ended up being rejected.

Therefore, while Switzerland might be mentioned on the list of what countries are on the gold standard today, it no longer uses this system.

Which Countries are on the Gold Standard? 2022

Which Countries are on the Gold Standard? 2022